Albania introduced a new tax reform called fiscalization ( or fizkalizimi in Albanian) in 2020. It includes online reporting of all issued invoices and receipts. It becomes mandatory in 2021.
What is fiscalization? Çfarë është fiskalizimi?
Fiscalization means that all issued cash and non-cash invoices and accompanying invoices shall be recorded in the Tax Administration database.
- Real time reporting of all invoices (fiscalization)
- e-Invoicing for non-cash transactions (B2B – B2G transactions)
What is fiscalization law?
Law No. 87/2019 “ON THE INVOICE AND CIRCULATION MONITORING SYSTEM”
Ligji Nr.87/2019 “PËR FATURËN DHE SISTEMIN E MONITORIMIT TË QARKULLIMIT”
The law does not produce any changes in the current tax scheme. Taxpayers must modernize their VAT reporting format with a new technology without affecting their business activity.
Why does fiscalization serve us? Përse na shërben fiskalizimi?
It will bring modernization of the tax system, transparency in doing business and use of electronic invoice (e-Invoice). Those are all necessary preparations for Albania to become a member of the European Union.
With this new financial reporting process, there will be better control and more efficient tax audit. The aim is to detect the non-payers. Moreover, every citizen can verify if the invoices they receive are declared in the tax system by scanning the QR code on the invoices.
When will this law become effective?
- For cashless transactions between taxpayers and public bodies, this law becomes effective on January 1, 2021: Mandatory B2G e-Invoicing
- For cashless transactions between taxpayers, this law becomes effective on July 1, 2021: Mandatory B2B e-Invoicing
- For cash transactions by taxpayers, regardless of tax liability or annual turnover realized, this law becomes effective on September 1, 2021: Mandatory B2C invoice reporting
What is an electronic invoice? Çfarë është një faturë elektronike?
“Electronic invoice” is the invoice issued, sent and received in electronic form, which allows automatic and electronic processing. The data format is Extensible Markup Language (XML).
What is an accompanying invoice? Çfarë është një faturë shoqëruese?
“Accompanying invoice” is a transport document used to accompany the movement of goods in the territory of the Republic of Albania when there is no transfer of ownership of goods.
What is the Central Invoice Platform? Cila është platforma qendrore e faturave?
“Central invoice platform” is the platform that is created, developed, maintained and is technically administered by the National Information Agency – Agjencia Kombëtare e Shoqërisë së Informacionit (AKSHI). The data exchanged through this platform are administered by the central tax administration
Who is obliged to issue an invoice in Albania?
Resident taxpayers, who exercise economic activity, pay profit tax or simplified profit tax, must issue invoices, regardless of the annual turnover realized in the current or previous fiscal year.
Non-Resident Taxpayers, supplying goods or services to public organizations (except when a public body is subject to VAT and is obliged to issue an invoice as the consignee of the goods or
services), or supplying services in the Republic of Albania, are subject to tax obligations including issuing invoices in the Republic of Albania through a tax representative.
When do you have to issue invoices and electronic invoices in Albania?
Invoices must be issued at the time of supply of the goods or services, in any case no later than 72 hours after receipt of the payment. B2B invoices may be issued monthly for certain supplies of goods or services, which are supplied on a regular or continuous basis. In this case, the invoice shall be issued no later than the 10th of the month following the month in which the supply is made.
Cash invoices must be printed on paper and handed over to the customer (emailing is also possible in some cases), while non-cash invoices in B2B and B2G transactions are compulsorily issued and submitted as an electronic invoice. Invoice for the transactions, in which the seller and buyers are both taxpayers, should be issued, sent and received as an electronic invoice, whether it is paid with or without cash.
Taxpayers must issue accompanying invoices (warehouse transfer notes) when they transport goods from one place to another without change of ownership in the territory of Albania. Taxpayers are obliged to issue an electronic invoice and implement the fiscalization procedure just before the transport of goods and print the QR code on paper. The QR code must accompany the movement of goods until the destination. The carrier is obliged to show it to the representatives of the General Directorate of Taxation (Tatime), upon request.
What are the books of sales and purchases?
The Central Invoice Platform consists of a sales book and a purchases book for every taxpayer subject to fiscalization. They are based on the invoices submitted to the central tax administration.
Every taxpayer, who issues an invoice, should review their data in the books until the 10th of the month following the month in which the invoices are issued and received. She must supplement them with additional information, if necessary, and finally confirm the accuracy of the data.