New Electronic Invoicing System in Albania
Albania begins an overhaul of its tax system through a mandatory real time electronic invoicing system.
On July 1st any company that conducts B2B transactions must declare invoices electronically to the General Directorate of Taxes (Drejtoria e Përgjithshme e Tatimeve – DPT). As of September all companies that conduct B2C transactions must also comply.
With the implementation of Law n. 87 2019 On electronic invoice and turnover monitoring system, Albania establishes a new invoicing and financial control model called the Audit System. One of the hallmarks of this system is the mass adoption of the electronic invoicing system by the whole of the Albanian business community.
The new Audit System aims to modernize the taxation model according to European standards to reduce tax fraud, simplify tax processes, and to improve overall tax collection.
The project has been implemented by the Albanian General Directorate for Tax (Drejtoria e Përgjithshme e Tatimeve – DPT) and the National Agency for Information Society AKSHI (Agjencia Kombëtare e Shoqërisë së Informacionit).
Who is affected by this new invoicing system?
- All taxpayers who issue invoices.
- Public Organizations.
- Banks, financial institutions, and other intermediaries who offer electronic invoice payment services.
- January 1st, 2021 - B2G Electronic invoicing.
- July 1st, 2021 – B2B Electronic invoicing.
- September 1st, 2021 - B2C Electronic invoicing.
Requisites to emit electronic invoices in Albania
- Electronic certificate issued by AKSHI.
- Issuance through the CIS central invoicing platform.
- Electronic invoicing software.
Electronic invoicing system in Albania
The Audit System requires the declaration of invoices issued by taxpayers in real time to the Albanian General Directorate for Tax (Drejtoria e Përgjithshme e Tatimeve – DPT). The government has therefore implemented a central invoicing platform called the Central Information System (CIS). All invoices must be sent to the CIS for validation. The DPT validates invoices by assigning a unique code called the NIVF. The DPT then generates PDF invoices with a QR code which includes the NIVF code. These invoices can be downloaded or printed from the CIS platform.
The government has stated that the new tax audit system has been chosen because it “guarantees the leverage of the latest technology based on the European Union’s standards and allows for better and more adaptable opportunities for the Albanian Economy.”
Through this system, taxpayers will be able to immediately verify the status of invoices and see if they have been correctly declared. This will have a positive impact on transparency and will help reduce the informal economy.
All invoices must be stored by the taxpayer in electronic format for 5 full years beginning the year after they have been issued. The storage must guarantee the authenticity of its origin, integrity of the content, and legibility of the documents.
Specifications for the basic use of the electronic invoice UN/CEFACT -Interindustrial Invoice (Schema XML 16B); Specifications for the basic use of the electronic invoice- ISO / IEC 19845: 2015 (UBL 2.1).
Corrective electronic invoices
In the case of errors on the invoice a new corrective invoice must be issued. This invoice must contain a reference to the original invoice it is correcting.
Benefits of the electronic invoice in Albania
- Improves tax collection. Based on the results experienced by other countries through their implementation of the electronic invoice, it is expected that VAT and other tax income will increase.
- More effective fiscal control. Because of the availability of real time financial transaction information and more efficient fiscal audits, the tax authority will be able to detect irregularities more efficiently.
- More transparency. All taxpayers, including buyers and Sellers will be able to verify that invoices have been declared to through the central invoicing platform.
- Digitalization of the economy. The automation of invoicing processes will reduce the time and management costs associated with invoicing. This will help companies and the government to increase their competitive advantages.
- Admission to the European Union. The use of electronic invoicing according to the European standard favors the admission process of Albania into the European Union.
Albania is currently standing at the gateway to European Union membership.
Being a candidate member since 2014, in 2020 The European Commission has drafted negotiating frameworks for Albania, laying out the guidelines and principles for their accession talks.
The new fiscal Audit system is a major component of reforms implemented by the government to comply with the necessary requirements to join the European Union.