Albania’s 2027 Fiscal Package: What Changes for Businesses

Alongside the 2027 budget, the government has presented a package of tax changes that will affect almost every business in Albania. Some changes are already adopted; others are still draft laws before Parliament. This article separates the two clearly and explains what to do before 1 January 2027.

Updated 12 November 2026. We will update this article once Parliament adopts the final laws.

Adopted: the VAT threshold falls to ALL 5 million

With Council of Ministers Decision (VKM) No. 822 of 28 October 2026, the VAT registration threshold was lowered from ALL 10,000,000 to ALL 5,000,000 of turnover in a calendar year. The decision takes effect from 1 January 2027.

• Who is affected: businesses with annual turnover between ALL 5 and 10 million that have so far been outside the VAT system.
• Registration deadline: under Article 122 of VAT Law No. 92/2014, within 15 days of the date on which turnover over 12 consecutive months exceeds the threshold. That date is the last day of the month in which the threshold is crossed.
• Notaries and bailiffs keep a zero threshold and register for VAT regardless of turnover.

See our dedicated guide: Albania’s VAT registration threshold drops to ALL 5 million in 2027.

Before Parliament: the proposed changes

According to the Ministry of Finance’s draft laws, as publicly reported, the package proposes:

• Standard VAT rising from 20% to 21% for most goods and services.
• 6% VAT on basic foods such as bread and flour, milk, eggs, rice, pasta, cooking oil, meat, fruit and vegetables. The final list would be set by a Council of Ministers decision.
• VAT on accommodation rising from 6% to 10% (special-status hotels, agritourism and accommodation structures).
• Payroll tax: the 23% rate would start at gross monthly pay above ALL 300,000 instead of ALL 200,000 today, with a new 32% rate proposed above ALL 700,000 a month.
• Changes to dividend tax, currently 8%.
• The fuel circulation tax replaced by an annual tax on vehicles.
• Tobacco excise rising gradually until 2033.
• Ending the need to file financial statements twice, plus stronger tools for collecting tax debts and penalising cash transactions.

These figures may change during the parliamentary process. Don’t apply them to invoices or payroll until the laws are adopted and published in the Official Journal.

What stays the same

Under Income Tax Law No. 29/2023, currently in force:

• Sole traders, self-employed individuals and entities with gross income up to ALL 14 million a year pay income tax at 0% until 31 December 2029.
• The corporate income tax rate is 15%.
• The annual return is still due by 31 March of the following year.

How to prepare before 1 January 2027

1. Calculate your turnover for the last 12 months. If you are at or near ALL 5 million, start preparing for VAT now.
2. Review prices and contracts. A business registering for VAT must decide whether its prices will absorb VAT or go up.
3. Set up invoicing and bookkeeping for monthly VAT returns and sales and purchase ledgers.
4. Follow the package through Parliament. If 21% VAT or the new payroll table passes, invoicing and payroll systems must be updated in January.
5. Plan your cash. VAT and payroll changes hit monthly cash flow directly.

How Abacus can help

We track every change in the law and adjust our clients’ bookkeeping, invoicing and payroll on time. If you’re not sure how the 2027 fiscal package affects you, contact us or explore our tax services.

This article is for general information and is not a substitute for professional advice on your situation. Sources: VKM No. 822 of 28.10.2026; VAT Law No. 92/2014; Income Tax Law No. 29/2023.