Study on the effectiveness of VAT and fiscal policies in Albania and the Region

ALTAX is pleased to present this study, which offers an in-depth analysis of the impact of VAT collection, informality, and fiscal policies on the economic stability of Albania and the region.

In Albania, one of the most notable features of the fiscal system is the high percentage of VAT collected at customs, reaching up to 74.6% of total VAT revenues. This raises several important issues related to the economic structure, VAT productivity, and the implications of such import dependence on the formality of domestic economic activities. One of the most significant consequences of high VAT collection at customs is the direct impact it has on the level of informality in the domestic economy. When the majority of VAT is collected from imports rather than from domestic production or trade activities, an opportunity arises for tax evasion by businesses operating in the internal market.

In this analysis, we examine VAT productivity in Albania and its relationship with informality, by exploring the factors influencing this dynamic and suggesting possible measures to improve the situation. The aim of this study is to serve as a valuable resource for policymakers, researchers, businesses, and the general public, providing insights into enhancing tax effectiveness, reducing informality, and strengthening transparency.

We invite all interested stakeholders to explore the study’s findings and contribute to the ongoing discussion on fiscal policy and economic development. For any questions, collaborations, or further discussions, please do not hesitate to contact us.

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