Fiscalization in Albania: High Hopes, Modest Results, and the Unfinished Transformation of Tax Administration

• Fiscalization in Albania was introduced with high expectations to reduce informality, tax evasion, and build trust between the state and taxpayers through technological modernization.
• Technically, the system has standardized communication, improved information flow, and reduced opportunities for manipulation and discretionary intervention.
• Institutional progress has lagged behind technical improvements, with large businesses adapting more easily than small, especially peripheral, businesses, which face higher costs and capacity challenges.
• Compared to the region, Albania has made progress but still lags behind countries that combine fiscalization with risk-based audits and intelligent data use.
• Fiscalization has increased tax revenues, especially in VAT and indirect taxes, by expanding the tax base and reducing underreporting, but the impact should be viewed realistically.

Source: altax.al

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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