VAT, a tax that fills the budget, collection on the rise - In 2025, 236 billion lek are expected to be collected, 10% more than in 2024

VAT, the tax which realizes almost half of fiscal revenues, is expected to collect 10 percent more money in 2025. The budget planning is based on the forecast that 'VAT revenues will be about 236 billion ALL or 22 billion more than in 2024. According to that planning, it is expected that the sources of VAT growth will be the increase in imports, good administration based on electronic invoicing as well

increase in income, especially from tourism and construction.

Being a final tax, the increase in VAT is also based on the effects of other taxes. This is expected to happen in 2025. According to the budget report, "For the year 2025, additional income from the implementation of the excise tax increase calendar is expected in the amount of 852 million lek as well as 20% VAT on this increased excise amount".

But are there risks to this income plan? From January to October 2024, customs revenues have been negatively affected by the decrease in the exchange rate of the euro and the dollar by about 12 billion ALL less. But this deficit was covered by the increase in total imports, even the VAT collected at customs for the same period was 7.6 billion lek or 8% more.

Imports of used and new vehicles, fuels, cigarettes and fruits and vegetables had the greatest impact on growth. While the deficit was marked by electricity, computers, mobile phones and other technological equipment.

In the total planned revenues from taxes and customs of 499 billion ALL, 236 are collected from VAT, while the rest comes from excise duties, profit tax, income tax and other national and customs taxes.