- The Albanian General Directorate of Taxes issued a notice to foreign digital service providers about VAT obligations.
- Foreign companies must appoint a tax representative in Albania and register for VAT.
- A 20 percent standard VAT rate applies to supplies to non-taxable persons.
- The reverse-charge mechanism applies to VAT-registered taxable persons, making the buyer responsible for VAT.
- Digital services include telecommunication, radio and TV, website supply, web-hosting, software, music, films, games, and remote teaching.
- Non-compliance may lead to audits, penalties, fines, and interest.
- The initiative aligns with the government’s Medium-Term Revenue Strategy and Tax Authorities Strategy.
- Foreign companies should review their procedures for VAT compliance.
- New market entrants should examine VAT rules and appoint a tax representative.
Source: vatabout.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.
