Collections increase, taxes refund 40 million euros of VAT in April

Positive developments in tourism are helping consumption, as domestic VAT revenues increased by 40% in April this year.

Official data from the Ministry of Finance indicate that, in April, 6.2 billion ALL were collected from internal VAT from taxes, from 4.4 billion ALL in April 2024.

For the entire 4-month period, taxes collected 24.2 billion VAT ALL, with an annual increase of 23.2%.

Based on the positive results, taxes have increased the refund amounts for businesses. For the month of April alone, 4.07 billion lek (40 million euros) were returned to businesses, the value of which is 65% of monthly VAT collections.

For the entire first 4 months of 2024, taxes reimbursed ALL 4.5 billion VAT to business with an increase of 18.5% compared to the same period of 2023.

The total revenues from net VAT in the budget reached 67 billion ALL in January-April 2024 with an annual increase of 10.8%, but the biggest contribution to this value is the VAT revenues that are levied at customs.

VAT collected from customs contributed 70% of the total VAT collected in 4 months, while internal VAT collected from taxes contributed 30%.

For the 12-month period 2023, the VAT refund was programmed at 18 billion ALL and was realized in the amount of 22.6 billion ALL with a realization of 4.6 billion ALL or 25.6% more. Compared to 2022, the reimbursement amount was 0.6% more.

Taxable persons, registered for VAT, resulting in a credit balance over ALL 400,000 thousand, have the right to submit a request for a VAT refund to the VAT Refund Directorate of the General Directorate of Taxes.

The VAT refund is carried out within 60 days from the date of submission of the request through the Treasury system, based on the rules defined in the instructions of the Minister of Finance. The request is subject to risk analysis for reimbursement.

Businesses with zero innovation are automatically reimbursed within 30 days from the date of submission of the request.

In case of non-reimbursement of the approved amount, the taxable person has the right to non-payment of other tax obligations in the amount of VAT claimed for reimbursement.

If a refund, which should have been carried out by the tax administration, is not carried out within the above deadlines, the tax administration pays late interest.

Taxes have completely paid off the arrears that were accumulated in the VAT refund and the deadlines from the request to the benefit have been significantly shortened.