Business
IEKA on fiscal package: delay lower VAT threshold for small businesses until July 2027
Chartered accountants back the VAT cut on basic foods but call for an impact analysis of the 21% rate and transition rules for the dividend tax.
By ANN Newsroom · Newsroom
November 1, 2026, 16:20 · Updated 19:04 · 2 min read
In brief
- IEKA recommends a transition period until July 1, 2027, for the new 5-million-lek VAT threshold.
- The institute calls for a consolidated analysis of the net effect of raising standard VAT from 20% to 21%.
- On dividends, IEKA wants clear rules for profits earned through Dec. 31, 2026.
The Institute of Authorized Chartered Accountants (IEKA) on Sunday joined the reactions to the 2027 Fiscal Package, calling for some of the changes to be analyzed further before approval. In an official statement published by Monitor magazine, IEKA said it supports tax fairness, a broader tax base and the formalization of the economy, but warned of the impact on consumption, competitiveness and compliance costs.
The VAT threshold and the 21% rate
Lowering the VAT registration threshold from 10 million to 5 million lek, according to IEKA, requires organizational, accounting and technical adjustments for the businesses affected. The institute recommends a transition period until July 1, 2027, accompanied by technical assistance, quarterly filing and administrative simplifications.
On raising the standard rate from 20% to 21%, IEKA calls for a consolidated analysis of the combined effect of the VAT measures on different categories of households. The VAT cut on basic foods is welcomed, but the institute says the real benefit depends on whether it is reflected in prices and calls for periodic, transparent price monitoring, as well as VAT refunds within clear deadlines, for example 30 days.
Dividends and the liberal professions
Raising the dividend tax from 8% to 15%, according to IEKA, requires a full impact assessment and possibly gradual implementation. The institute wants transition rules for dividends from profits earned through Dec. 31, 2026, to avoid effects similar to retroactivity. It also suggests a dedicated analysis of the tax treatment of the liberal professions.
IEKA said it is ready to discuss its recommendations with the Ministry of Finance in a technical working group. AmCham, the Foreign Investors Association (FIAA) and the Alliance of Liberal Professionals have previously spoken out against the package.
