Overview of the procedure
The State Agency for Strategic Programming and Aid Coordination (SASPAC) plays a central role in the registration of projects financed by foreign donors and in enabling their exemption from value added tax (VAT), in the cases where this is provided for in the relevant agreements. In accordance with the Instruction of the Minister of Finance No. 6, dated 24.02.2025, every project with a foreign source of funding that is exempt from the payment of taxes must be registered with the Agency before implementation begins.
The process starts with the submission, by the project implementer or beneficiary, of the Application Form — an integral part of this instruction — together with the accompanying documentation, including the grant agreement with the donor and the project fiche with the relevant budget. The documents may be submitted in person or by post. Following verification, the Agency issues the Registration Certificate, which contains the Unique Identification Code and the basic data of the project, thereby recognising the entity as a beneficiary of the exemption.
On the basis of this certificate and the information forwarded by the Agency, the General Directorate of Taxation (GDT) automatically issues the implementer or beneficiary with the VAT Exemption Certificate. This second certificate serves as the operational document for zero-rate VAT treatment, both for supplies within the country and for the importation of goods within the framework of the project.
The certificates accompany the entire tax cycle of the project and remain valid until its completion. For any change to the agreement or the value of the funding, the beneficiary notifies the Agency, which ensures the update of the data and the information of the relevant authorities. Likewise, in cases where VAT has been paid prior to certification, its reimbursement is made possible in accordance with the procedure set out in point 8 of Article 63/1 of the Instruction of the Minister of Finance No. 6, dated 24.02.2025.
This process ensures transparency, administrative ease and the proper fulfilment of Albania’s international commitments to its development partners. It is based on institutional cooperation between SASPAC, the General Directorate of Taxation and the Ministry of Finance. In the near future, applications will also be submitted online through the government platform e-Albania, further simplifying the procedure for beneficiaries.
The main steps of the process
1
Completion and submission of the documentation
The implementer or beneficiary prepares the documentation in accordance with MoF Instruction No. 6, dated 24.02.2025 — the Application Form, the grant agreement and the project fiche with the relevant budget — and submits it to the Agency in person or by post.
2
Issuance of the Registration Certificate by the Agency
Following verification, the Agency issues the Registration Certificate with the Unique Identification Code, thereby recognising the entity as a beneficiary of the exemption.
3
Issuance of the VAT Exemption Certificate
The General Directorate of Taxation automatically issues the implementer or beneficiary with the VAT Exemption Certificate, which is used for domestic supplies and the importation of goods.
The role of the Agency in the exemption process
Guarantor of transparency — ensures a clear, documented process in line with the legal framework.
Verification of documentation — reviews the documents submitted by the implementing or beneficiary agencies, organisations and entities.
Issuance of the Registration Certificate — recognises the entity as a beneficiary of the exemption.
Notification of the tax and customs authorities — informs the GDT and the General Directorate of Customs of the registered entity.
Coordination for the VAT Exemption Certificate — facilitates the process for the implementers or beneficiaries to obtain the certificate issued by the GDT.
Monitoring and handling of issues — follows the progress of the process and supports implementers in case of difficulties.
Coming soon
Online applications through the government platform e-Albania.
Frequently asked questions
Click on each question to expand the answer.
01
Who is eligible for the VAT exemption?
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Projects that are financed by an official donation or grant agreement and whose agreement stipulates that funds may not be used for taxes and duties. Every beneficiary or implementing entity must register the project with the Agency before implementation begins.
02
When must the application for registration be submitted?
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The application must be submitted before the implementation of the project begins and before any expenditure is incurred that is intended to benefit from the VAT exemption.
03
What documents are required, and how are they submitted?
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The documentation includes the Application Form (under MoF Instruction No. 6, dated 24.02.2025), the grant agreement with the donor and the project fiche containing the description and budget of the project. The documents are submitted to the Agency in person or by post.
04
What is the difference between the Registration Certificate and the VAT Exemption Certificate?
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The procedure involves two certificates with complementary roles. The Registration Certificate is issued by SASPAC, contains the Unique Identification Code and recognises the entity as a beneficiary of the exemption. The VAT Exemption Certificate is issued automatically by the General Directorate of Taxation on the basis of the Registration Certificate and is used to apply the zero-rate VAT treatment to domestic supplies and imports.
05
How should the supplier invoice purchases under the VAT exemption?
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Suppliers must state on the invoice the Unique Code of the Registration Certificate, the number of the VAT Exemption Certificate and the relevant legal references. This ensures transparency and fiscal correctness in every transaction.
06
Does the exemption also apply to the importation of goods?
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Yes. With the required documentation, goods imported within the framework of the project are also exempt from VAT. The Agency and the General Directorate of Customs cooperate to ensure a streamlined and fair process.
07
Are the certificates valid for the entire duration of the project?
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Yes, both certificates — the Registration Certificate and the VAT Exemption Certificate — accompany the entire tax cycle of the project and remain valid until its completion.
08
What happens in case of changes to the agreement or the funding?
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For any change to the agreement or the value of the funding, the beneficiary must notify the Agency, which updates the data and informs the relevant authorities — the General Directorate of Taxation and the General Directorate of Customs.
09
When can a VAT reimbursement be requested?
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Reimbursement may be requested where, for the goods or services intended for the implementation of the project, VAT has been paid prior to obtaining the Project Registration Certificate, in accordance with the provisions of Instruction No. 6, dated 24.02.2025, as amended. Likewise, where the agreements ratified by the Assembly or approved by the Council of Ministers provide that the non-use of foreign financial resources for the payment of taxes (VAT) shall also be made effective through a reimbursement mechanism, the VAT paid is reimbursed. Reimbursement is carried out in accordance with the procedure laid down in point 8 of Article 63/1 of the aforementioned Instruction.
10
Does the VAT exemption apply to all foreign-funded projects?
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The exemption procedure applies only to projects financed with funds received under a donation or grant agreement concluded between the Council of Ministers of the Republic of Albania / the Republic of Albania and foreign donors, where the agreement provides that the funds received shall not be used to pay taxes in Albania.
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How will applications be submitted in the future?
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The Agency is working on the digitalisation of the process, and applications will be able to be submitted online through the government platform e-Albania.