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Albania Enforces 20% VAT on Nonresident Digital Services, Requires Tax Representative Registration

  • Albanian tax authorities issued a notice to multinational companies on May 14, 2025
  • Companies providing digital services to Albanian consumers must comply with VAT rules
  • Requirements include appointing a tax representative and registering for VAT
  • A 20 percent VAT rate applies to sales to final consumers
  • VAT liability must be paid through the tax representative
  • Businesses registered for VAT in Albania must self-assess VAT for services received
  • Services subject to VAT include telecommunications, broadcasting, web services, software, databases, media, games, and distance teaching
  • Authorities aim to increase transparency and expand the tax base
  • Efforts include identifying foreign entities and ensuring compliance with Albanian VAT rules
  • Non-compliance may result in administrative and legal actions

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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