Tax Administration of Albania issues guidelines for accommodation providers ahead of the summer season.

Ahead of the summer season, Albania’s Tax Administration has issued detailed guidelines for accommodation providers to ensure accurate invoicing and compliance with fiscal rules. Key requirements include labeling invoices with “Room” at the start of service descriptions, separating lodging from other services, and applying the reduced 6% VAT rate only to eligible accommodation services in certified tourist facilities.

 

As the summer season approaches, the Tax Administration of Albania has released instructions for businesses operating in the accommodation sector to ensure compliance with Council of Ministers No. 160 (March 12, 2025). The guidelines streamline reporting procedures and transparency within the tourism industry.

The usage of standardized naming on invoices—accommodation invoices must clearly state "Room" at the beginning of the service description to facilitate accurate fiscal reporting. On every fiscalized invoice for accommodation services, the description of the item must necessarily begin with the word "room." This ensures that the accommodation service is clearly identified and treated with its own special tax regime. Each invoice must clearly indicate the number of days or nights the client stayed in the accommodation facility. The use of general descriptions such as “weekly package” or “daily stay” should be avoided, and instead specified, e.g., “Room—3 nights,” as appropriate.

 The invoice must distinguish lodging fees from additional services such as restaurants, sunbeds, umbrellas, or swimming pools. However, businesses offering bundled packages must ensure transparency in pricing.

Hotels and other accommodation facilities that provide extra services—such as sunbeds, umbrellas, restaurant meals, or spa treatments—must issue separate invoices unless these services are included in an indivisible package. For example, a hotel with a private beach must charge separately for each rented sunbed or umbrella, preventing misclassification of non-accommodation services.

The preferential 6% VAT rate applies only to accommodation services in officially recognized tourist structures. This includes lodging fees and breakfast when bundled into the room price. Other amenities, such as bars, restaurants, and wellness services, do not qualify for the reduced rate and are subject to standard VAT rates.

The Tax Administration urges businesses to follow these guidelines to ensure compliance, facilitate transparent invoicing, and prevent tax discrepancies.