As from 1 January 2021, the minimum VAT registration threshold will be increased from the current ALL 2 million of annual turnover to ALL 10 million. Taxpayers with annual turnover below ALL 10 million will have the option to register (or stay registered) for VAT only if their annual turnover is expected to exceed ALL 5 million.
The new rule also will apply to:
- Freelance professionals providing services, for whom the VAT registration threshold currently is zero; and
- Agricultural producers subject to the special compensation scheme (i.e., individual farmers), for whom the VAT registration threshold currently is ALL 5 million.
Source Deloitte
