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Albania

Briefing document & Podcast: E-Invoicing & E-Reporting in Albania

6 days ago
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SUMMARY

Executive Summary:

Albania has implemented a comprehensive e-invoicing and e-reporting system, known as “fiscalization,” which mandates real-time electronic reporting of virtually all VAT-related transactions to the tax authorities. This system, fully implemented by 2021, covers Business-to-Government (B2G), Business-to-Business (B2B), and Business-to-Consumer (B2C) transactions, as well as cross-border transactions involving Albanian VAT-registered entities. The system operates on a “clearance” model, requiring invoices to be validated by the tax authority before being considered valid. Recent developments include the introduction of pre-filled VAT returns in 2025, leveraging the comprehensive data collected through the e-invoicing system. Non-compliance can result in significant penalties, including fines and invalidation of invoices.

Key Themes and Information:

Implementation Timeline and Scope:

  • Phased Rollout: The “fiscalization” system was implemented in phases, starting in 2020 and fully enforced by 2021.
  • Phase 1 (Sept 1, 2020): Large VAT-registered taxpayers – cash transactions.
  • Phase 2 (Jan 1, 2021): Nearly all cash transactions and mandatory B2G e-invoicing.
  • Phase 3 (July 1, 2021): Mandatory B2B e-invoicing.
  • Phase 4 (Sept 1, 2021): Mandatory e-reporting for B2C transactions.
  • Broad Scope: The system covers B2G, B2B, and B2C transactions, as well as exports and transactions involving non-resident entities registered for VAT in Albania. “Albania’s e-invoicing and e-reporting mandate is comprehensive – covering all taxable persons and all sales (domestic and cross-border).”
  • Grace Period: A grace period was in place through December 31, 2021, during which penalties for non-compliance were waived. For a limited set of taxpayers, the penalty waiver was further extended to June 30, 2022.

Taxable Persons in Scope:

  • Wide Coverage: The mandate applies to “all taxable persons in Albania,” including VAT-registered businesses, non-VAT registered businesses for B2C, public entities, intermediaries (banks, payment service providers), and non-resident VAT payers. Even small cash-based businesses must report sales in real time.

Data and Reporting Requirements:

  • Continuous Transaction Controls (CTC): Albania uses a real-time invoice clearance model, where invoice data is electronically transmitted to the tax authority’s Central Information System (CIS) at the moment of issuance. “For every taxable transaction, the invoice must be electronically transmitted to the Central Information System (CIS) of the tax authority at the moment of issuance (essentially real-time or immediate reporting).”
  • Detailed Data: Full transactional details are required, including seller and buyer identification (Tax Identification Numbers), invoice number and date, a line-by-line listing of goods or services with quantities and prices, applicable VAT rates and amounts, total amount, and the method of payment.
  • Unique Invoice Identifier (NIVF code): A unique alphanumeric code assigned by the tax system must appear on the final invoice. This often includes a QR code.
  • Digital Signature: “Albania mandates that every e-invoice is effectively digitally signed by the issuing taxpayer’s fiscal device or software using the government-issued certificate.” An electronic certificate issued by the National Agency for Information Society (AKSHI) is required.

Transmission Method and Format:

  • Two Main Methods:Online Self-Care Portal
  • Integrated software solutions (APIs)
  • XML Format: The e-invoice data must conform to specified XML schemas (UBL 2.1 or UN/CEFACT XML 16B).
  • Real-time Reporting: Reporting is intended to be instantaneous, with invoices reported at issuance time.

Penalties for Non-Compliance:

  • Significant Penalties: Failure to comply can lead to fines, invalidation of invoices, and potentially business license complications. “An invoice not processed through the CIS can be considered not fiscally valid.”

E-Invoice and E-Report Formats & Platform:

  • Central Invoice Platform: The General Directorate of Taxes operates the Central Invoice Platform (CIS) to handle all invoices.
  • Clearance Model: “Albania uses a clearance model for B2B/B2G e-invoicing. This means the tax authority is an intermediary in the invoicing process.”
  • E-reporting vs. E-invoicing: E-invoicing refers to the clearance of structured invoices for B2B and B2G. E-reporting refers to the electronic transmission of transaction data for B2C.
  • Integration and Certificates: Digital signatures are mandatory, and companies must obtain an electronic seal/certificate from AKSHI.

Archiving and Retention:

  • Minimum 5-Year Retention: “Electronic invoices must be archived for at least 5 years (starting from the year following their issuance).” Some guidance suggests 10 years.
  • Digital Storage: Invoices should be stored digitally in their original XML/PDF form. Authenticity and integrity must be preserved.

Current Status and Future Developments:

  • Fully Implemented: As of 2025, the system is fully implemented and operational.
  • Pre-Filled VAT Returns: “In 2025, Albania leveraged the e-invoice data (sales and purchase ledgers) to introduce pre-populated VAT returns.” This started with the April 2025 VAT period.
  • No immediate expansion plans: No new phases or major changes are currently announced.

Key Regulations and References:

  • Law No. 87/2019
  • Instruction No. 16
  • Ministry of Finance Order (No. 9, 2019)
  • General Directorate of Taxes (Drejtoria e Përgjithshme e Tatimeve)
  • AKSHI

Implications and Considerations:

  • Businesses operating in Albania must ensure full compliance with the e-invoicing and e-reporting requirements to avoid penalties.
  • The real-time reporting system provides the Albanian tax authorities with comprehensive visibility into transactions, enabling more effective tax administration and compliance enforcement.
  • The introduction of pre-filled VAT returns simplifies compliance for businesses by leveraging the data already reported through the e-invoicing system.

INDEPTH ANALYSIS

E-Invoicing and E-Reporting in Albania: Scope, Timeline, and Requirements

Implementation Timeline: Albania introduced mandatory electronic invoicing through a phased “fiscalization” rollout starting in 2020, with full enforcement in 2021:
  • December 2019: Law No. 87/2019 “On electronic invoice and the turnover monitoring system” was approved, establishing the legal framework for e-invoices and a real-time invoice reporting system. [altax.al]
  • September 1, 2020: Phase 1 – Fiscalization begins for large VAT-registered taxpayers’ cash transactions (e.g. retail sales). This required those businesses to issue fiscal receipts and transmit the data electronically for any cash payments. [altax.al]
  • January 1, 2021: Phase 2 – Fiscalization extended to nearly all cash transactions (including small businesses). Simultaneously, e-invoicing became mandatory for B2G (business-to-government) transactions (all invoices issued to public entities). [fiaalbania.al] [cleartax.com], [altax.al]
  • July 1, 2021: Phase 3 – Mandatory B2B e-invoicing for all transactions between taxable persons (cashless transactions between businesses). From this date, businesses must issue and report invoices electronically for domestic business-to-business sales. [cleartax.com], [digtechs.com]
  • September 1, 2021: Phase 4 – Mandatory e-reporting for B2C transactions, completing nationwide coverage. All sales to consumers, regardless of payment method or company size, had to be reported through the central platform. In practice, this means every invoice or receipt – whether for a domestic B2B, B2G, or B2C sale – must be electronically logged with tax authorities in real time by this date. [digtechs.com]
Grace Period and Enforcement: To ease the transition, the government instituted a grace period before applying penalties:
  • No Penalties in 2021: The Council of Ministers authorized a transitory period through December 31, 2021 during which non-compliance with the new e-invoicing requirements would not incur fines. This six-month grace period (July–Dec 2021) allowed businesses to adapt and resolve technical issues without punishment, even though they were expected to start e-invoicing. [fiaalbania.al], [taxathand.com]
  • Extended Deadline for Certain Taxpayers: For a limited set of taxpayers, the penalty waiver was further extended to June 30, 2022. This extension applied to small businesses under the simplified tax regime (non-VAT-registered entities making only cash sales to final consumers), as well as specific sectors like water suppliers, electricity providers, and banks in the context of e-invoice payment notifications. After these dates, full enforcement began – invoices not issued/reported via the electronic system could be deemed invalid, and companies face fines or other sanctions for non-compliance. [taxathand.com], [taxathand.com] [taxathand.com]
Scope of Transactions – Domestic and Cross-Border: The Albanian e-invoicing mandate has a broad scope, covering virtually all VAT-related transactions in the country:
  • Business-to-Government (B2G): All invoices issued to public authorities must be electronic and reported in real time (mandatory since Jan 1, 2021). Public institutions are required to accept e-invoices, and their suppliers must issue them via the platform. [cleartax.com], [openenvoy.com]
  • Business-to-Business (B2B): Invoices between established businesses (within Albania) must be issued electronically and cleared through the tax authority’s system (mandatory since July 1, 2021). This applies to domestic B2B transactions, regardless of industry or company size. [cleartax.com], [openenvoy.com]
  • Business-to-Consumer (B2C): Retail sales and other B2C transactions are subject to e-reporting requirements. Businesses must issue a fiscal invoice/receipt (often still paper for the customer) but transmit the data electronically to the tax authority. This has been mandatory for all cash and non-cash sales to consumers since September 1, 2021. In essence, every sale – even a cash sale to an individual – must be recorded in the central system, achieving full transaction visibility for the tax authority. [digtechs.com]
  • Cross-Border Transactions: The mandate also covers transactions involving foreign or non-resident entities when a taxable person in Albania is involved. Exports (sales from an Albanian business to a buyer abroad) fall under the e-invoicing/reporting rules if the Albanian entity is registered for VAT – such invoices must be generated through the system as well. Likewise, non-established businesses registered for VAT in Albania are in scope: any foreign business operating in Albania or having a VAT registration there must comply with the e-invoicing obligations for its Albanian transactions. (Foreign businesses not registered in Albania are outside the system, but their Albanian customers would still report the purchase via the “fiscalization” process, such as through self-billing or import VAT documentation as applicable.) [altax.al] [voxelgroup.net]
Taxable Persons in Scope: All taxable persons in Albania are required to comply, with very few exceptions. This includes:
  • All VAT-registered businesses (regardless of size or sector) – they must issue their outgoing invoices through the electronic system and ensure their incoming invoices (from suppliers) are received and processed via the system as well. [voxelgroup.net]
  • Non-VAT registered businesses for B2C: Even small businesses that are below the VAT threshold or under a simplified tax regime have obligations if they issue any kind of invoice or receipt. Initially, only VAT-registered taxpayers were targeted, but as of September 2021 even small cash-based businesses must use certified fiscal devices or software to report their sales in real time. [digtechs.com]
  • Public entities and intermediaries: Government bodies must be able to receive e-invoices. Additionally, banks, payment service providers, and financial intermediaries have obligations to report payment information for e-invoices (to link invoice data with payments) as part of the overall system. [altax.al], [altax.al]
  • Non-resident VAT payers: Any non-established company that is registered for Albanian VAT (for example, a foreign company with a fiscal representative or doing distance sales in Albania) is treated like a local taxable person for e-invoicing. They must use the Albanian Central Invoicing Platform to issue invoices for their Albanian transactions, just as local firms do. [voxelgroup.net]
Data and Reporting Requirements: The system in Albania is a Continuous Transaction Controls (CTC) model, often referred to as the “Audit System” or fiscalization system, which requires detailed invoice data to be submitted to the tax authority in real time:
  • Real-Time Invoice Clearance: For every taxable transaction, the invoice must be electronically transmitted to the Central Information System (CIS) of the tax authority at the moment of issuance (essentially real-time or immediate reporting). The tax authority’s system validates the invoice data on the spot. Only after approval is the invoice considered valid for tax purposes. This “clearance” process applies to B2B and B2G invoices and to B2C receipts alike – data goes to the tax authority’s platform as the transaction happens. (In practice, businesses use certified invoicing software or devices that connect to the CIS via internet. In case of temporary internet outages, the law provides procedures – e.g. issuing the invoice and transmitting the data as soon as connectivity is restored – to ensure no invoice goes unreported.) [voxelgroup.net], [digtechs.com] [altax.al], [altax.al]
  • Data Content: The full transactional detail of each invoice must be provided. The required data includes all the information traditionally on a VAT invoice: seller and buyer identification (Tax Identification Numbers), invoice number and date, a line-by-line listing of goods or services with quantities and prices, applicable VAT rates and amounts, total amount, and the method of payment. The system also captures special elements introduced by the fiscalization law, such as: [altax.al], [altax.al]
    • A unique invoice identifier (NIVF code): Upon successful reporting, the tax system assigns a unique alphanumeric code to the invoice. This code must appear on the final invoice document (often encoded as a QR code) to prove it was cleared. [voxelgroup.net], [digtechs.com]
    • Codes for issuer’s location and device: Businesses had to register each establishment and invoicing device with the tax system. These codes are included in each invoice record, allowing authorities to know, for example, which cash register or computer issued the invoice. [altax.al], [altax.al]
    • Digital signature or certificate stamp: The law requires using an electronic certificate issued by the National Agency for Information Society (AKSHI) to digitally sign or seal each invoice sent to the platform. This ensures authenticity and integrity of data. (Albania mandates that every e-invoice is effectively digitally signed by the issuing taxpayer’s fiscal device or software using the government-issued certificate.) [cleartax.com], [openenvoy.com] [openenvoy.com], [altax.al]
  • Transmission Method: Invoices and receipt data can be transmitted in two main ways:
    • Via an online Self-Care Portal provided by the General Directorate of Taxes, where businesses can manually input or upload invoices.
    • More commonly, via integrated software solutions that connect to the CIS through APIs. Businesses typically use certified invoicing software or updated cash registers that automatically send each invoice in XML format to the government platform for validation. This can be built into their ERPs or point-of-sale systems. [openenvoy.com]
  • Format: The e-invoice data must conform to the specified XML schemas. Albania’s system accepts UBL 2.1 (ISO/IEC 19845:2015) or UN/CEFACT XML 16B formats for invoice data. In local terminology, the format is sometimes called “Fiskalizimi XML.” All invoices are essentially structured data files, not just PDFs – though after clearance, a PDF with a QR code can be generated for record or customer purposes. [cleartax.com], [voxelgroup.net] [cleartax.com], [cleartax.com]
  • Timing: The reporting is intended to be instantaneous. There is no allowance like “X days after issuance” for most invoices – they must be reported at issuance time (real-time clearance). For B2C cash receipts, the transmission often happens immediately at sale completion. If technical problems prevent immediate upload, businesses must transmit the stored invoice data as soon as possible once the system is available. (In practice, this means truly real-time for the vast majority of cases.) [voxelgroup.net]
Penalties for Non-Compliance: Once the grace periods lapsed, failing to comply with e-invoicing obligations can lead to significant penalties under Albanian law:
  • Invalid Invoices: An invoice not processed through the CIS can be considered not fiscally valid. Tax authorities have indicated they may reject expenses or VAT credits based on invoices that weren’t cleared through the system. This implicitly pressures businesses to comply, since otherwise their clients might refuse an invoice that lacks the official QR code or NIVF number. [fiaalbania.al]
  • Fines: The tax legislation imposes fines for various infringements, such as not issuing an invoice, not transmitting it to the portal, or issuing it late. While specific fine amounts are defined in Albanian law (and can vary by offense and taxpayer type), examples include monetary penalties for each undeclared transaction and potential further sanctions for repeat offenders. (As of the latest guidance, Albania has gotten stricter after mid-2022 – routine enforcement of penalties and audit assessments is in place for those who circumvent the electronic invoicing system.) [taxathand.com]
  • Business Impact: Besides direct fines, non-compliance can result in business license complications or other administrative measures. In extreme cases, persistent failure to issue fiscal invoices can lead to business operation suspension under Albanian tax procedural rules. In summary, after the transitional period ended, compliance is mandatory and enforced, with financial penalties and risk of unrecognized transactions if not followed. [fiaalbania.al]
E-Invoice and E-Report Formats & Platform: The Albanian tax authority (General Directorate of Taxes) operates the Central Invoice Platform (often called the CIS or e-Fatura system) to handle all these invoices. Key technical details include:
  • Central Platform: All invoice data is channeled to a central government platform managed jointly by the General Directorate of Taxes (for data administration) and AKSHI (for IT infrastructure). This platform is the hub for clearance – it issues the unique invoice ID and stores the reported data. Taxpayers interact with it either through web services or the Self-Care Portal. [altax.al]
  • “Clearance” Model: Albania uses a clearance model for B2B/B2G e-invoicing. This means the tax authority is an intermediary in the invoicing process: the supplier must obtain validation from the platform before an invoice is considered delivered to the buyer. In practical terms, once an invoice is approved, the supplier can then send the e-invoice (or a PDF copy with QR code) to their customer knowing it has the official clearance code. For B2C, the model functions more as real-time reporting, since the customer typically just receives a receipt, but the data is simultaneously sent to the tax system. [complyance.io]
  • E-Reporting vs. E-Invoicing: In Albania’s context, e-invoicing usually refers to the clearance of structured invoices for B2B and B2G, whereas e-reporting refers to the electronic transmission of transaction data (not necessarily a formal invoice) for B2C and other cases. By September 2021, both mechanisms are in force: B2B/B2G invoices are electronic documents by law, and B2C sales are all electronically reported (fiscalized) to the authorities. The data content and format are similar (XML), but for B2C the buyer doesn’t need to be given an XML invoice – a paper or electronic receipt with a QR code suffices, backed by the digital report to GDT. [digtechs.com]
  • Integration and Certificates: Companies must obtain an electronic seal/certificate from AKSHI to sign their invoices and authenticate to the system. They also must register their invoicing software or devices with the tax authorities. This upfront setup is a compliance requirement before issuing any e-invoice. Once configured, the software handles applying the digital signature and sending the data over a secure connection. (Notably, digital signatures are mandatory on each invoice/receipt sent to ensure security.) [cleartax.com], [altax.al] [openenvoy.com]
Archiving and Retention: Albanian legislation sets strict rules for keeping electronic invoices and related records:
  • Retention Period: Electronic invoices must be archived for at least 5 years (starting from the year following their issuance). This requirement applies to both the issuer and the recipient of the invoice. Both sides need to ensure they preserve a copy of the e-invoice (in its original electronic format) for five years in a way that guarantees its integrity. [openenvoy.com], [voxelgroup.net]
  • Format and Integrity: Invoices should be stored digitally in their original XML/PDF form – paper printouts alone are not sufficient, given authenticity must be preserved. During the retention period, the authenticity of origin, integrity of content, and legibility of the invoices must be ensured. The use of digital signatures and unique IDs helps with this, but businesses are responsible for proper digital archiving solutions (e.g. secure servers or compliant cloud storage) to prevent loss or alteration of the files. [openenvoy.com], [cleartax.com]
  • Access for Authorities: If audited, a company must be able to reproduce any invoice from its archives in a readable format. The tax authority can request electronic invoice data, and because everything is also stored on the central platform, they have their copy as well. However, the law still obliges taxpayers to keep their own archives.
  • Extended Archiving (Certain Cases): While the standard minimum is 5 years, other laws (like general tax or accounting law) may effectively require keeping records for longer (for example, up to 10 years in some cases, aligning with general statute of limitations for tax audits). As a best practice, many companies align the e-invoice retention with the 10-year period used for accounting documents. (Notably, one source indicates Albania’s tax authority expects a 10-year archiving in some guidance, though the primary law specifies 5 years minimum.) To be safe, businesses often keep e-invoices for a decade unless clarified otherwise. [complyance.io]
Penalties for Poor Archiving:
It’s worth noting that failure to maintain the electronic archives can also result in penalties. If a taxpayer cannot produce the e-invoice upon request, it may be treated similarly to failing to issue an invoice. Thus, compliant digital storage is an essential part of the system. [openenvoy.com]
Current Status and Future Developments: As of 2025, Albania’s e-invoicing system is fully implemented and operational. All VAT invoices are being reported electronically, and this rich data is now feeding into further tax administration improvements:
  • Pre-Filled VAT Returns: In 2025, Albania leveraged the e-invoice data (sales and purchase ledgers) to introduce pre-populated VAT returns. Starting with the April 2025 VAT period, the tax authority’s e-filing portal now provides draft VAT declarations that are automatically filled with data from the fiscalization system. This means the sales and purchase information that companies have been reporting through e-invoices and e-receipts is used to calculate their VAT due and credit in a draft return. Taxpayers must review the pre-filled return, make any necessary corrections or additions (for example, for any transactions not captured or adjustments), and then confirm submission by the 14th of the following month. The introduction of pre-filled VAT returns is a direct result of Albania’s comprehensive e-reporting – it aims to simplify compliance and reduce errors by using the data that businesses already report in real time. (Notably, if a business uploads additional invoice data via Excel or other means outside the normal real-time flow, those may not automatically sync to the pre-fill, so manual adjustments can be required.) The move toward pre-filled returns aligns Albania with trends in other countries that have implemented digital control systems and is a significant recent reform (effective mid-2025) to streamline VAT compliance. [vatcalc.com], [knowledgen…or.pwc.com] [vatcalc.com]
  • No Current Plans for Additional E-invoice Expansion: The system known as “fiskalizimi” in Albania now covers all transaction types, and as of the latest updates no new phases or major changes are announced. The legal framework is considered mature, and authorities are focusing on optimizing the system’s usage (such as the pre-filled returns and tightening compliance) rather than expanding the scope further. Future changes could come if Albania harmonizes with broader European Union e-invoicing initiatives, but at the moment the country already meets high standards by having a nationwide clearance system. [voxelgroup.net]
  • References to Regulations: The primary legal basis is Law No. 87/2019 and its related by-laws, including Instruction No. 16 and a Ministry of Finance Order (No. 9, 2019) that set technical rules. Additionally, existing VAT law provisions were amended by this reform to require electronic invoicing. The system also aligns with EU Directive 2014/55/EU (for e-invoicing in public procurement) and incorporates requirements of the EU VAT Directive for invoice content. Official information can be found through the General Directorate of Taxes (Drejtoria e Përgjithshme e Tatimeve) website and AKSHI, which publish guidelines for taxpayers. Recent tax authority announcements (e.g. on pre-populated VAT returns) are usually released via the GDT’s online portal and press releases. [complyance.io] [altax.al] [cleartax.com] [knowledgen…or.pwc.com]
Summary: Albania’s e-invoicing and e-reporting mandate is comprehensive – covering all taxable persons and all sales (domestic and cross-border) – with a clearance system requiring real-time electronic reporting of invoices to the tax authorities. Key dates in 2020–2021 marked the gradual extension of these requirements to B2G, then B2B, then B2C transactions, accompanied by a short grace period before full enforcement in 2022. E-invoices must be issued in structured XML format and transmitted via the government’s portal, which validates each invoice and returns a unique ID (and QR code) that must appear on the invoice. Data from all invoices (including buyer/seller details, amounts, and taxes) is thus collected by the tax authority almost instantly, enabling measures like the new pre-filled VAT returns in 2025. Taxpayers must archive e-invoices for 5+ years in digital form and ensure their integrity. Non-compliance (failing to issue or report invoices) can lead to penalties, though the rollout included an initial leniency period to facilitate adoption. Overall, Albania’s system aims to increase VAT compliance and transparency by electronically linking every transaction into the tax system, from invoice issuance all the way to VAT return preparation. [voxelgroup.net] [vatcalc.com] [openenvoy.com] [taxathand.com]
Sources:

 

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