B2G services (as of now)
Steuerzahler, die Rechnungen für Leistungen an staatliche Einrichtungen ausstellen
According to a report by Reuters, Albania has now announced that it will introduce a new online billing system. The aim is to increase the country’s revenues and prevent companies from evading tax payments.
As Albania is said to be seeking to join the EU, the move is a major step towards regulations already in place in many EU countries. When Prime Minister Edi Rama took office, a campaign was also launched to encourage companies to register and issue receipts. However, many companies in the country do not yet follow this practice.
According to Finance Minister Anila Denaj, the main objective is to combat tax evasion through sound legislation, technology and real-time information for every transaction, product and receipt.
The Minister also confirmed that approximately 1,600 hotels on a booking page were not registered with the relevant tax authorities. Some hotels were therefore closed and could only reopen after registration. She also noted that 160 fuel suppliers and 453 construction companies also did not pay taxes.
The government informed the companies that they would have to pay a fine if they did not produce receipts.
According to the International Monetary Fund (IMF), the so-called black market was responsible for a third of economic activity between 1991 and 2015, the year of NATO membership and EU accession.
The new plan requires companies to report all online transactions from 1 January. By 2021, all tax transactions are to be electronic. The director-general of the tax department, Delina Ibrahimaj, expects the plan to move the country forward, with an approximately 15 percent increase in VAT collection and a more efficient tax collection process.
Corporate income tax in the country will be set at a flat rate of 15 percent. If a company has a turnover of less than eight million, it is exempt from this tax. In order for a company to be tax resident, it must be established in Albania or have a permanent establishment there.
2021 Albania has adopted a new law which includes the new rules regarding electronic invoicing. These requirements are valid since January 1, 2021.
So, since this year, certain groups are obliged to replace the traditional paper invoice with an electronic format.
The following control groups are affected:
To create an electronic invoice, a secure and compatible software or solution certified by the tax authorities is required. This allows the information about the supplies to be transferred in real-time. Only those invoices issued through such software will also be considered a valid document for tax purposes. It is also possible for companies to use internal software, provided that it has been certified by the authorities.
There are also solutions that do not require specific software that must be certified by the authorities. The simplified fiscalization procedure in Albania does not require the installation or use of any specific invoicing software. Taxpayers must register their invoices with this system in a central gateway for invoices called a self-care portal. However, this portal is only allowed for a limited category of taxpayers or public authorities.
The following groups fall into this category:
Taxpayers in B2G transactions should first apply to the National Agency for the Information Society (NAIS) to obtain the electronic certificate.
An account has been set up by the tax authorities in the Central Gateway of Invoices so that their own business information and invoice solutions can be identified and updated. Companies or taxpayers should be able to access this.
In addition, taxpayers in Albania should contact the certified software providers in a timely manner to verify that the existing solution allows invoicing in accordance with the legal requirements.
Taxpayers who could not make it possible to implement the appropriate invoicing software by January 1, 2021, can use the simplified fiscalization procedure until June 30, 2021.
Then, before creating an electronic invoice, it is necessary to upload the electronic certificate to the Central Gateway of Invoices.
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