A perspective on the history of Value Added Tax (VAT) in general and its application in the field of agriculture in Albania

Abstract This article examines the history of the Value Added Tax (VAT) and its implementation in the agricultural sector in Albania. Although VAT has been applied in Albania since 1996, it has undergone several legal changes over time with respect to tax rates and application within this sector. Recent changes in VAT rates have affected the prices and costs of agricultural inputs, as well as the determination of market selling prices for agricultural products. Given the significant role of agriculture in the Albanian economy, this article aims to analyze VAT rates, along with the VAT compensation and crediting schemes applied across the main agricultural branches. It also identifies the challenges encountered throughout the agricultural supply chain. Additionally, the article highlights selected practices used by European Union (EU) countries in the application of VAT in agriculture.