VAT Rate in Albania (TVSH) — 2026 Guide
Albania applies Value Added Tax (known locally as TVSH — Tatimi mbi Vlerën e Shtuar) on most goods and services. Here is everything you need to know about current rates and how to calculate them.
Standard VAT rate: 20%
The standard rate of 20% applies to the majority of goods and services in Albania, including electronics, clothing, furniture, most professional services, and hospitality.
Reduced VAT rate: 6%
A reduced rate of 6% applies to:
- Hotel and accommodation services
- Certain healthcare services
- Some food products
- Books and educational materials
Exempt from VAT (0%)
- Financial and insurance services
- Education services (public)
- Medical services (public healthcare)
- Exports of goods
- Postal services (universal)
Quick calculation examples
| Scenario | Net | VAT (20%) | Gross |
|---|---|---|---|
| Product purchase | 5,000 ALL | 1,000 ALL | 6,000 ALL |
| Consulting service | 50,000 ALL | 10,000 ALL | 60,000 ALL |
| Hotel (6% rate) | 20,000 ALL | 1,200 ALL | 21,200 ALL |
Add VAT:
Gross = Net × 1.20Remove VAT:
Net = Gross ÷ 1.20Who must register for VAT?
Businesses with annual turnover exceeding 10 million ALL (approximately €90,000) must register for VAT in Albania. Voluntary registration is also possible for smaller businesses.
Calculate Albanian VAT now
Use our free VAT calculator with 20% preset for Albania.