Livestock Farmers Association against 10% VAT compensation with autoinvoice, but with direct billing

2025-11-25 21:43:25, Ekonomi CNA

Livestock Farmers Association against 10% VAT compensation with autoinvoice, but

Business associations presented their demands today at the hearing on the fiscal package draft laws in the Finance and Economy Committee.

The Chairman of the Dairy Farmers Association, Gentian Lalaj, requested that the 10% VAT compensation not be made through invoices issued by the processor, but by invoicing directly from the farmer. For the dairy farmers association, the invoices issued by the processors are abusive.

"Up to 70% of milk sales occur without invoices, as the self-invoice is an abuse against the farmer who expects the processor to deliver it when and where he needs it, in the amount he needs at the price he needs, to adjust his monthly or annual balance or to be in order with himself."

We don't understand why it's not regulated, that is, why there's no government control to have direct billing of milk products. Let's say we have a farm with nine cows, they produce 30 liters per cow, 270 liters of milk. I don't understand why this farmer or this farm shouldn't bill its own production. Small dairies work up to the 10 million lek limit to avoid VAT, and this is the reason why Albanian farmers get milk for 45 to 50 lek. This will mean that if 100 thousand liters, the farmer will only be billed 50 thousand.

"The 10% compensation should be given against the invoice issued by the farmer himself."

The Livestock Association also requested the equalization of VAT on purchases and sales of goods with the farmer's VAT, as well as the implementation of a compensation scheme based on liters of milk produced.

"We are asking for an equalization of VAT, as much as you want, 20 to 20%, 5 to 5% or 10 to 10%. We who sell milk, but also as buyers as farms that we are, today we find ourselves in the reality that Albanian farmers who produce corn, produce barley, produce alfalfa, cannot sell us their products, because we cannot buy them either. We cannot buy them because we are not aware of VAT in the system of purchases that we can make. Because if we are making an hourly comparison, if 1 kg of corn is 25 lek, for the collector to bring it to the farm it will cost 30 lek, because it will be given with VAT. We cannot pay them 30 lek, because that 5 lek will transform us into a payment at the end of the month to the state.

But if the state would fiscally recognize the small farmer, who could recognize VAT, on the bill he would receive for a pound of corn, a pound of barley, a pound of alfalfa or any product he could produce, we would be willing to buy all the products that surround us, if each of us on our farms.

We have also suggested a subsidy of 1 lek per liter for milk producers, at least for 2 years. This would bring about formalization of the market up to 95%. This would bring about declaration of agricultural products. There would be no more abuse by processors. But the Ministry of Agriculture has explained that this scheme is not accepted by the European Union.

Eduart Sharka, representative of the United Farmers Union, said that in principle the draft law is welcome, but it has defects that create inequality.

"It excludes from compensation farmers who are subject to VAT, 30 to 40% of farmers trade with small businesses that are not subject to VAT, and this group of farmers who trade with small businesses are excluded," he claimed./Monitor.al