VAT compensation for farmers begins on July 1st

2026-04-30 15:12:03, Ekonomi CNA

Minister of Finance Petrit Malaj announced in a media statement that VAT compensation for farmers will begin on July 1, 2026.

Minister Malaj said that according to preliminary estimates based on the value of autoinvoice transactions issued to farmers by collectors and processors, it is estimated that the value of compensation for the first three months of 2026 reaches 400 million lek.

"VAT compensation in agriculture will start on July 1, 2026. The tax administration is conducting an assessment of the impact of the new policy undertaken.

For the first 3 months of 2026, it is observed that we have an increase in transactions between farmers with NIPT and collectors and processors by 20%.

The number of farmers in transactions with VAT buyers is 5,642. While the number of VAT buyers who have made transactions with farmers is 448 or 16% more than in the first three months of 2025.

The total number of farmers equipped with NIPT is 113,470.

About 400 million lek is the potential amount for reimbursement for the first three months of 2026.

"I call on processors and collectors to issue invoices to farmers," said Malaj.

From January 1, 2026, the new VAT compensation scheme for farmers has entered into force, which provides for the benefit of a 10% compensation for agricultural products sold to collectors, processors or certified agritourism.

According to the legal changes, the basis of compensation will be the invoice issued by the purchasing entity, on which 10% is calculated and returned to the farmer.

The aim of this scheme is to reimburse the 10% VAT that farmers have paid on agricultural inputs, such as chemical fertilizers, seeds and seedlings, reducing production costs and promoting the formalization of transactions in the sector.

From 2019 to December 2021, VAT on agricultural inputs was zero. From January 1, 2022, after the approval of fiscal changes, the imposition of a 10% VAT on agricultural input prices came into effect.

How will farmers be compensated through autoinvoices?

To receive compensation, the farmer who will make the request must also submit the invoices issued by the buyer, i.e. the invoices on which the farmer's NIPTI, as well as his bank account number, must be listed.

The tax administration has clarified that the request for compensation will be submitted by December 31, for supplies made during the January-June period of the respective year. By December 30

June of the following year, for supplies made during the period July-December of the previous year.

The request will be sent by post or electronically. The tax administration will make the compensation within 30 days from the date of submission of the request.

Meanwhile, in order to benefit from the compensation, the farmer must first be provided with an identification number (NIPT) from the Tax Administration, without having to periodically declare VAT.

Annual turnover must not exceed the minimum VAT registration threshold;

In total, the financial effect in the first year of implementation is estimated at around 1.5 billion lek./Monitor