Accounting for Dental and Medical Clinics in Albania

Dental clinic accounting has one feature that sets it apart from most businesses: many of a clinic’s services are exempt from VAT. That affects pricing, purchases and how the books are kept. Here’s what every clinic should keep in mind.

Separate services from product sales

Albania’s VAT law exempts:

• healthcare services provided by public or private health institutions recognised by the competent authority;
• healthcare services provided within a licensed medical or paramedical profession;
• healthcare services provided by dentists and dental technicians.

But not all clinic income is healthcare. Selling products (hygiene or cosmetic products, say) or services that aren’t aimed at health care may be taxable. So keep exempt services separate from other sales in invoicing and in the books.

Document equipment purchases and maintenance

• Equipment (dental units, imaging, sterilisation) is recorded as an asset and depreciated, not expensed at once.
• When services are exempt, VAT paid on purchases is usually not deductible and becomes part of the cost. That changes the real cost of an investment.
• Keep maintenance and calibration contracts and software licences with the invoices.
• Materials and implants are held in stock and linked to treatments.

Check the tax treatment for your activity

• If the clinic also has taxable sales, it may need to register for VAT and deduct input VAT proportionally.
• Associate doctors: employment contract or service contract? The tax and contribution treatment differs a lot.
• Income tax: 0% on gross income up to ALL 14 million a year until 31 December 2029; above that, 15% for companies.
• Every patient payment is fiscalised, even when the service is VAT-exempt.

Mistakes to avoid

• Treating all income as “exempt” without checking.
• Deducting input VAT for exempt activities.
• Paying associate doctors without a clear contract.
• Expensing costly equipment in a single year.

FAQ

Does a clinic need to register for VAT?

It depends on the nature of its income. Exempt healthcare services don’t create VAT, but other sales may. Analyse your income before deciding.

Are exempt services fiscalised?

Yes. The VAT exemption doesn’t remove the duty to issue an invoice.

Abacus for clinics

We split income by tax treatment, keep the asset register and run payroll. See our healthcare services or contact us.

This article is for general information and is not a substitute for professional advice on your situation. Sources: VAT Law No. 92/2014 (Article 51(c), (ç) and (dh)); Income Tax Law No. 29/2023.