Taxation: Question and Answer on Taxation

Read also: Taxation and invoicing. Frequently Asked Questions

1. What is fiscalization? Fiscalization is a set of measures used to reduce tax evasion in cash and cashless transactions. In the fiscalization process, all transactions (invoices) are reported in real-time to the Tax Administration. For the purpose of identifying and tracking each transaction, each invoice is given a unique invoice identification number (UIN).
2. Who will be subject to fiscalization? In accordance with the Law No. 87/2019, dated 12.18.2019 “For the invoice and circulation monitoring system”, published in the Official Gazette No. 3, dated 01/20/2020, The subjects of invoice fiscalization will be:

   Entities covered by fiscalization

   1. all taxpayers who issue invoices, according to this Law and current legislation on value added tax;
   2. public bodies;
   3. banks, non-bank financial institutions, and other entities that offer electronic bill payment services.
3. How will the fiscal device data for cash transactions be sent to the Tax AdministrationThe method of submission and the processes for sending data to the Tax Administration and issuing the invoice are as follows:- The taxpayer, through the software solution, sends a message to the Tax Administration server with data in XML format regarding the transaction (the issued invoice). – The Tax Administration server sends the taxpayer a confirmation of receipt for the invoice, assigning it a unique code (NIVF, Unique Invoice Identifier Number). – The taxpayer issues the printed invoice (which includes the NIVF) to the customer.The registration and submission of the invoice to the Tax Administration can be verified by scanning the QR code on the invoice. The consumer can verify their invoice, and the taxpayer can also verify the purchases registered under their name.
4. What is the purpose of using NIVF? NIVF is a unique number for each invoice, which determines the link between the invoice and the invoice issuer. The NIVF serves as the main data of the invoice for the purpose of its recording and identification in the purchase and sales ledgers. The Tax Administration Information System generates the unique invoice identification number (NIVF) after the invoice verification process is successfully completed and sends it to the taxpayer as confirmation of the invoice information regularly received.
5. Will a daily closing be required for the fiscal device for cash sales made? For cash sales made by the fiscal device, daily closing will no longer be necessary, as invoices will be transmitted to the Tax Administration in real-time.
6. What happens if communication/connection with the Tax Administration is interrupted? In the event of an internet connection interruption, the taxpayer issues the invoice as in a normal transaction, with the only difference being that the invoice will not bear the NIVF code generated by the Tax Administration and must therefore be printed on paper. The taxpayer must, within 48 hours after the internet connection is restored, re-establish the internet connection and send all invoices issued during offline transactions. For all invoices issued offline, the Tax Administration assigns an NIVF and returns it to the taxpayer as confirmation of receipt for the late-submitted invoices. If the taxpayer is unable to re-establish an internet connection, within a 48-hour period, for which the service provider is responsible, or due to force majeure, the taxpayer must inform the Tax Administration and provide documents or other evidence demonstrating the inability to establish an internet connection, in accordance with the instructions of the Minister of Finance.
7. What should be done in case of a fiscal device malfunction for cash transactions? If the fiscal device suffers a complete malfunction, the taxpayer issues invoices from the special invoice block. The special invoice block is printed by the tax authorities or by private companies authorized by the Director General of Taxes and distributed by the tax authorities. The taxpayer is required to restore the operation of the fiscal device within five days from the date the fiscal device suffered a complete malfunction, or to provide a new device. All invoices issued from the special invoice block must be fiscalized within 5 days. This means that the taxpayer must transfer all invoice data from the special invoice block to the electronic invoicing device (for cash transactions) that they use to issue invoices and perform the fiscalization procedure.Invoices from the special invoice block will continue the sequential numbering that begins after the number of the last invoice issued by the electronic device. When the taxpayer resumes issuing invoices from the electronic device, he must continue the sequential numbering that begins after the number of the last invoice issued from the special invoice block during the period when the device was out of service.
8. How can fiscal invoices that have been issued be verified as fiscally registered? All buyers or invoice recipients can verify whether their invoice has been fiscalized and submitted to the Tax Administration within 60 days of the invoice date. Verification is carried out through the central invoice platform or via a dedicated application by scanning the QR code on the invoice. It can also be verified at the Tax Administration office. If the buyer is a taxable person, they can verify on the central invoice platform whether the invoice has been fiscalized, since the invoice must be recorded in their purchase book. If the invoice does not contain an NIVF at the time of issuance, it means that it has not been fiscalized before issuance.
9. Can I use the same certificate for all of the business's fiscal devices? The digital certificate is uniquely tied to the business as an entity. Therefore, the same digital certificate can be used for all of the business's fiscal devices.
10. What is AKSHI? The National Agency of the Information Society (NAIS) is the institution responsible for the administration and maintenance of the state's technology and information systems. The scope of NAIS's activities: – Implementation of policies and strategies for the development of the information society sector (hereinafter IS) and, in particular, information and communication technology (hereinafter ICT); – Coordination of programs in the field of IS and, in particular, ICT; – The promotion of investments in the field of ICT; – The development of practices for exercising the powers granted to the minister by legislation in the field of electronic communications; – Promoting new technologies in the field of ICT; – Contributing to education and encouraging the use of ICT by the public. The AKSHI is the responsible institution that will issue the electronic certificate for taxpayers.
11. Where can I go for questions and clarifications about fiscalization? For questions and clarifications regarding the fiscalization process, you can write to the address [email protected].

Questions – Technical Answers

Pyetje teknike për pajisjet dhe faturat

1. Is a specific printer needed? No, a specific type of hardware is not required. Any printer that can print the mandatory content of the invoice (as determined by law) is sufficient. It is important that the printer can print the QR code on the invoice.
2. Can the invoice be changed after it has been printed? The invoice cannot be changed after printing, according to the current legislation on value-added tax and the law on fiscalization. For the purpose of correcting the invoice after its issuance, a corrective invoice must be issued.
3. Is printing the invoice mandatory? For all cash transactions, printing a receipt is mandatory, except for electronic services, or when the supply of goods or services is contracted and charged through a mobile application, online store, or similar. In these cases, the receipt does not need to be printed on paper, but can be sent to the buyer or recipient of the receipt via email or as an electronic invoice.
4. Do all invoices need to be stored in the database? In addition to sending them to the Tax Administration, all invoices must be kept by the taxpayer in digital format, according to current tax legislation.
5. Is the cloud an option for storing invoices? Invoices can also be stored in the cloud.
6. What is the deadline for uploading invoices if there is no internet or the fiscal device has malfunctioned? – 48 hours if the internet connection is experiencing problems. – In the event of a malfunction of the fiscal device, the taxpayer issuing invoices is required, within five days from the day the fiscal device broke down, to repair it or replace it with a new device.

The application certification process

1. How will the application for certification be carried out? What are the steps that will be followed? All applications offered to taxpayers in the Albanian market must undergo the certification process carried out by AKSHI. Instructions for this certification process (which steps and how certification will be carried out) will be published on the website of the Fiscalization Project.
2. How is the invoice cancellation procedure carried out? Currently, a negative amount in cancellation is not legally possible. Theoretically, there is no “invoice cancellation,” but an “amendatory invoice” (or return invoice) must be issued. The amendatory invoice contains the reference number of the original invoice being corrected, for which the system generates a special message and sends it to the Tax Administration for fiscalization. This amendatory invoice contains negative values if all items are to be canceled.
3. Telecom bills are generated and printed without knowing whether they will be paid in cash, via bank transfer, etc. How is this resolved in Croatia and other countries? This type of invoice, which has a payment order and can be paid via e-banking, at the bank, or similar methods, is treated as a cashless transaction, and “payment order” should be written in the “payment method” section.
4. How will e-invoicing be carried out for online sales and online stores? For all cash transactions, printing a receipt is mandatory, except for electronic services, or when the supply of goods or services is contracted and charged with the obligation to be paid through a mobile application, online store, or the like. In these cases, the receipt does not have to be printed on paper, but can be sent to the buyer or recipient of the receipt via email or as an electronic receipt.

Documents Questions and Answers on the Draft Law ‘On the Invoice and Turnover Monitoring System’ Source: General Directorate of Taxes. 

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