Invoicing and Tax regulation in Albania
Invoicing Regulation in Albania
In Albania, invoicing regulations are mandatory and are strictly enforced by the National Tax Authority. These include the correct and complete issuer details, invoice number, VAT number, and detailed description of the goods or services. Business to business (B2B), business to consumer (B2C), and business to government (B2G), all need to abide by these regulations.
Real-time Reporting/Fiscalization in Albania
Albania has mandatory real-time reporting and fiscalization rules. All businesses including B2B, B2C, and B2G are required to report sales invoices in real-time using USE (Unified System of Monitoring). This system allows the government to monitor sales transactions and businesses in real-time, aiding transparency and fighting against tax evasion.
E-invoicing in Albania
E-invoicing in Albania is not mandatory but is increasingly being adopted by businesses for efficiency and better paper trail management. Businesses, regardless of whether they are B2B, B2C, or B2G, can utilize this technology to streamline their invoicing processes.
VAT/GST/Tax Compliance in Albania
VAT/GST/Tax compliance is compulsory in Albania. The standard VAT rate is 20%, while a reduced rate of 6% applies to certain goods and services. Companies dealing with B2B, B2C, and B2G need to ensure their tax compliance by filing VAT returns and paying due taxes regularly to the Albanian tax authorities. Tax evasion can lead to severe penalties.