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2026-11-01 17:05:10Biznes SHKRUAR NGA REDAKSIA VOX

Socialist MP Erion Braçe has rejected criticism from the Democratic Party regarding the changes foreseen in the 2027 Fiscal Package, denying that small businesses will face a new burden of 21% VAT.

According to him, businesses with a turnover of up to 5 million lek will be exempt from the obligation to register in the VAT scheme, while the profit tax for small businesses and freelancers will remain zero until 2029.

Through a post on social media, Braçe listed several arguments to explain how the new regime will be implemented. He emphasized that businesses with a turnover of 5 to 10 million lek will be registered in the VAT scheme, just as businesses with a turnover of 10 to 14 million lek are currently.

"No, small businesses will not pay Value Added Tax; not even 21%! Let's tell people and small businesses the truth," writes Braçe.

The socialist MP argues that VAT is a consumption tax, which is paid by the consumer at the time of purchasing a good or service. According to him, business serves as an agent for collecting this tax and then pays it into the state budget.

Brace also rejected the claim that around 17,000 small businesses will be affected by a new fiscal burden. He noted that a significant portion of them operate in the services, trade and especially food trade sectors.

According to him, the reduction of VAT on some products from 20% to 6%, starting from January 1, will positively affect the consumption and activity of these businesses.

Erion Braçe's full post:

"No, small businesses will not pay Value Added Tax; not even 21%! Let's tell people and small businesses the truth:

1. It is not true that small businesses with a turnover of up to 5 million lek will pay 21% VAT; the truth is that this business is exempt from the obligation to register in the VAT regime.

2. It is not true that a small business with a turnover of 5 to 10 million lek will pay 21% VAT; The truth is that this business will be registered in the VAT regime, as is the small business with a turnover of 10-14 million lek that is there, unattacked, uncontrolled, not bankrupt, working, producing, trading, collecting and earning income.

3. It is not true that VAT is a tax on business; The truth is that VAT is a consumption tax, a tax on the consumer, I pay it for every good and service I receive, now also for small businesses. Business, as an agent of the government, collects it from me and must pay it into the state budget; therefore, I pay it, not business, nor small business.

4. It is not true that 17 thousand small businesses are being attacked by registering them in the VAT regime; The truth is that the same logic works for them: the consumer pays the VAT, not the business. There is another truth: most of these businesses are services, trade, above all food; most of their products from January 1 have a VAT reduced from 20 to 6%, helping consumption, the consumer and the turnover of these businesses.

5. It is not true that freelancers will pay 21% VAT, just as it is not true that they are the only middle class in this country; The truth is that for them too, VAT will be paid by the recipient of services or goods from them, with an invoice, like everyone else. The only tax that small businesses and freelancers must pay, as a rule, is the income tax, the profit tax. This tax has been, is and will be until 2029, zero percent, zero lek!


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