Attachment_6_-__Albania_and_Kosovo_VAT_Procedures.pdf

Albania VAT:

INVOICING PROCEDURES

a. USACE awards contract, free of VAT, manages contract and performs quality assurance.

b. Awarded Contractor performs per SOW, and submits invoices, free of VAT, to USACE in accordance with the terms of the contract. Contractor pays VAT for invoice amount to the Republic of Albania, and includes proof of payment, with invoice.

c. USACE will process the invoices and pay the contractor directly for validated non-VAT costs.

USACE will send copies of all validated and approved invoices to the Local Municipality.

d. The Local Municipality will review contractor invoices and will directly reimburse the contractor for all VAT paid to the Republic of Albania following the receipt of the invoice. The reimbursement of VAT will be in Albanian Lek (ALL) and will be transferred electronically from the Municipality directly to the contractor. The U.S. Government is not responsible for the duration of the reimbursement process, any currency fluctuations, or changes in exchange rates.

Points of contact with the Municipality will be provided to the awarded Contractor at contract award. After contract award, the US Embassy will issue the Contractor a Letter of Value Added Tax (VAT) Exemption co-signed by the Albania Ministry of Finance. This letter shall serve as the Contractor's proof of VAT exemption for the duration of this contract and no other.

Kosovo VAT:

INVOICING PROCEDURES

a. After contract award, the US Embassy will issue the Contractor a Letter of Value Added Tax (VAT) Exemption co-signed by the Kosovo Ministry of Finance. This letter shall serve as the Contractor’s proof of VAT exemption for the duration of this contract and no other.

b. The Contractor shall submit invoices directly to the Contracting Officer’s Representative (COR) via email.

c. The Contractor is responsible for paying the VAT amount applicable to all effort under this contract. The Contractor shall show VAT as a separate item on invoices submitted for payment.

Payment will be made in US Dollars ($) exclusive of VAT.

d. Once the invoice is paid by the USACE, the Contractor may seek reimbursement from the Kosovo Ministry of Finance (MOF) and is required to follow the proper procedures as defined by the MOF. The Contractor is solely responsible for obtaining reimbursement from the MOF for any VAT paid. The Contractor may receive a VAT reimbursement of VAT credit from the MOF.

Reimbursement may take up to 18 months from the time of submittal to the MOF.