At the beginning of the year, Albania announced the introduction of a continuous control system for transactions (CTC), called fiscalizimi. This system requires the previous authorization to taxpayers from the tax authority to issue invoices. This way, Albania stands next to France and Poland, which both have similar reporting systems.
This new measure aims to reduce tax evasion in the country and improve and extend tax authorities’ controlling capacities. Furthermore, the regulation is aligned with the EU Directive 2014/55 on Electronic Invoicing in the public administration and with the VAT Directive, getting closer to the existing European regulations.
CTC, continuous control system for transactions
The CTC system requires taxpayers to implement a “fiscalisation system”. It consists of a certified software to transmit electronic invoices to an invoicing centralised platform in real-time managed by the National Agency for Information Society (NAIS). Taxpayers have to obtain an electronic certificate issued by the Tax Authority to start using the new invoicing model.
There are two types of certified software:
- Approved fiscal devices with printing capabilities: these will be used for invoices from cash-transactions (e.g., at the cash desk). However, taxpayers can also use existing fiscal devices adapted to the new regulation.
- Approved software solutions with certain functionalities including digital signature: these will be used for invoices from non-cash transactions.
Implementation timeline
The CTC fiscalisation model will come into force gradually from September 1, 2020, to all taxpayers subject to VAT and income tax in Albania:
- September 1, 2020: cash-transactions of taxpayers subject to VAT and corporate income tax (CIT) with an annual turnover exceeding 8 million leks (approximately, €64,790);
- January 1, 2021: cash-transactions of taxpayers subject to VAT and simplified CIT with an annual turnover between 2 and 8 million leks (between €16,200 and €64,790); cash-transactions of taxpayers subject to simplified CIT with an annual turnover that doesn’t exceed 2 million leks; and non-cash B2G transactions.
- July 1, 2021: non-cash B2B transactions
Next steps
With this new regulation, Albania wants to contribute to the reduction of tax evasion in the country and make new steps towards the implementation of compulsory electronic invoicing.
Even if additional legislation is needed to implement the fiscalisation law, the country has demonstrated its interest to implement the new model and made significant progress taking into account the economic challenges of 2020.
If you would like to be up to date of the European legislation in Electronic invoicing, you can check Voxel’s interactive map:
