According to Monitor magazine, the government has decided to lower the VAT threshold for physical person to zero.
This means that taxable physical persons that offer paid services such as: lawyers, notaries, specialized physicians, dentists, specialized dentists, pharmacists, nurses, veterinary doctors, architects, engineers, laboratory technicians, designers, economists, agricultural engineers, accountants, and appraisers, will pay VAT even if their declared annual revenue is zero. Exempt from this category will be persons who operate in hotel management.
At the end of 2017, via Decision of the Council of Ministers (VKM) 953, the government lowered the minimal threshold to include businesses with an annual turnover between 2 and 5 million lekë, starting April 1, 2018.
Preempting another legal defeat, the government has also made sure that physical persons will be unable to bring this law to the Supreme Court. Per the Court’s decision, while the Council of Ministers has no legal right to define which categories can be included in the VAT, it can only assign a minimal threshold.
