Agricultural and livestock farms will receive up to 12% of their fuel expenses as a deductible VAT

2023-12-21 07:25:00, Ekonomi CNA

Agricultural and livestock farms will receive up to 12% of their fuel expenses

Agricultural and livestock farms will receive more VAT deductible on fuel expenses for the purposes of economic activity.

The regulations for the use of fuel for the recognition of VAT deductible expenses based on the law "On Value Added Tax" for this activity are 3%.

The changes in the Instruction "On value added tax" published in the Official Gazette determine that for agricultural and livestock farms, the recognition of the deductible VAT will be up to 12% of the expenses for the purchased fuel. The changes will not apply to oil obtained without excise duty through the support schemes of the Ministry of Agriculture.

"In instruction no. 6, dated 30.1.2015, "On value added tax in the Republic of Albania", as amended, the following additions and changes are made: In Article 55, "Limitations of VAT deduction for certain supplies", the following are made addendum: After letter "c", of point III, point "ç" is added, with the following content: "ç) Agricultural and livestock farms, up to 12%.

According to the paragraph "Calculations, in terms of the application of norms, are made and recorded in the purchase book. Other limitations of the right to deduct VAT are applied according to Article 74 of the law", the following paragraph is added: "The crediting norm, for agricultural and livestock farms, which are beneficiaries of the national support scheme, will be calculated only for additional liters. The detailed procedures for the verification of transactions, their control and recognition of credit, when the legal criteria are met, are detailed by the DPT in the section of the Control Manual dedicated to these transactions", it is defined in the amended instruction.

The changes are evaluated positively by representatives of the milk processing industry, as according to them, the increase in the limit of expenses for fuel with deductible VAT will promote the formalization of farms.

Provided that the purchased fuel is used only for the needs of the taxable economic activity, the right to deduct the VAT is exercised up to the norms determined according to the activities in the instruction on value added tax.

For the fishing sector this norm is 10%, in construction it varies from 8 to 33%, for the transportation of passengers 43%, for goods with technological means 78%, in trade 3% and other activities 2%./ Monitor.al