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"There have been cases of tax evasion", VAT also for businesses with turnover over 5 million lek from 2027, Malaj: It will bring 4.5 billion lek to the budget

2026-11-04 13:03:26Biznes SHKRUAR NGA REDAKSIA VOX
"There have been cases of tax evasion", VAT also for businesses with
Minister of Finance, Petrit Malaj

Minister of Finance, Petrit Malaj, told the Economy Committee that businesses with a turnover of over 5 million lek will pay VAT from January 2027, up from over 10 million lek, which is the current threshold.

The measure aims to limit tax evasion and is expected to bring 4.5 billion lek to the budget. In response to questions from MP Erion Braçe, he assured that businesses will not have additional administrative costs, as the software will be provided by the tax administration.

Braçe: How much tax evasion has been made from the VAT threshold of 10 million lek?

Malaj: There have been cases of violations based on controls exercised by the tax authorities, since the tax rate is high, it created space for tax evasion. We have calculated that 4.5 billion lek will come to the budget from the VAT reduction alone.

Braçe: What are the costs of a small business registering for VAT?

Malaj: The tax administration has built the modules to minimize costs for these businesses. There will be no cost for software, it will be provided by the tax administration. As for the calculation of VAT, this is enabled by the fiscalization system itself. There will be no administrative costs.


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