- Law No. 87/2019 “On the Invoice and the Monitoring System of Turnover” remains the legal basis for fiscalization, published in the Official Gazette No. 3, dated January 20, 2020.
- The initial implementation deadlines, divided by annual turnover, began on September 1, 2020, and continued until July 1, 2021.
- Those initial deadlines were later postponed to July 2020, with the final calendar closing the phases on September 1, 2021.
- After 2021, taxation is fully in effect and is no longer divided into revenue brackets.
This post was written on September 13, 2020, when fiscalization was still in its initial phase and the deadlines below were those in effect at the time. Read more Technical specifications of the electronic invoice and the The expected results of the reform, published in the same period.
The law and initial implementation deadlines, 2019–2020
Law No. 87/2019, dated December 18, 2019 “On the invoice and the monitoring system of turnover”, It was published in the Official Gazette No. 3, dated January 20, 2020. The initial implementation deadlines, according to the turnover bracket and type of transaction, were as follows.
- For cash transactions, VAT and corporate income tax payers with annual revenues exceeding 8 million lek, as of September 1, 2020.
- For cash transactions, VAT and simplified profit tax taxpayers with annual revenues exceeding 2 million lek, as of January 1, 2021.
- For cash transactions, taxpayers subject to simplified profit tax with annual income of up to 2 million lek, as of January 1, 2021.
- For cashless transactions between taxpayers and public authorities, as of January 1, 2021.
- For cashless transactions between taxpayers themselves, as of July 1, 2021.
The purpose of the law was to establish the principles, rules, criteria, obligations, deadlines, and procedures for taxpayers and for the producers and maintainers of software solutions, regarding the issuance of invoices and electronic invoices, the recording of data, the fiscalization procedure, and the certification of software.-s. The law also guaranteed the continued operation of fiscal devices until its entry into force, with the stated aim of reducing informality, tax evasion, and allowing real-time verification of transactions.
Regulatory Acts and Public Consultation, 2020
Along with the law, three sub-legislative acts were in public consultation, to be finalized after receiving comments from interest groups.
- Government Decree on the technical and functional requirements of the software solution for invoicing and fiscalization, and the criteria for registering the producers and maintainers of programs.
- Instruction “On the invoice and the monitoring system of turnover.”.
- Government Decree on the criteria for using the simplified invoicing procedure.
The drafts had been published since December 2, 2019 on the portal of Public Consultation, with the option to comment also at [email protected]. You can download the full texts of the relevant secondary legislation here, instruction, Decision on the simplified procedure and the Technical VKM. Original source, General Directorate of Taxes.
How did taxation develop after this?
The initial deadlines above were postponed several times during 2020, mainly due to the pandemic. The final calendar, approved in July 2020, reduced the phases to three simple dates. From January 1, 2021, cashless transactions between taxpayers and public authorities. From July 1, 2021, cashless transactions between taxpayers themselves. From September 1, 2021, cash payments are also prohibited for all taxpayers, regardless of annual turnover.
How does taxation work today?
Today every invoice is issued electronically and reported in real time to the tax administration, with a unique identification number and the issuer's security code. Issuance goes through only certified software solutions and the taxpayer's electronic certificate, and there is a special procedure for cases without internet. You can find the full, practical summary at Our page on fiscalization.
Frequently asked questions
Do the original September 2020 deadlines still apply?
No. They were replaced by the final July 2020 calendar, with the last phase on September 1, 2021. Today, fiscalization applies to everyone, without distinction based on turnover.
What do I need to have in order today regarding fiscalization?
A certified software solution, your electronic certificate, and the connection to the central invoicing platform. The practical details are at Our page on fiscalization.
