Fiscalization: What are the expected results?

There are many benefits and expected outcomes from this system: Taxes – Better nationwide tax collection, with the main share remaining the Value Added Tax. Referring to the results achieved in other countries that implement this system, VAT collection has recorded increases of 10–151 TP3T compared to VAT revenues before the implementation of this system. Increases are also expected in other tax categories (e.g., Income Tax). Reduction of informality, By improving two key aspects—reporting more cash transactions and reducing hidden non-cash transactions—and through better oversight of the fiscal system, informality in the Albanian economy will be reduced. Increase in efficiency in tax reporting, With more information collected from a taxpayer, the Tax Administration will be able to offer the taxpayer better service, such as pre-filling VAT invoices with the taxpayer's already available data. This will speed up tax reporting and reduce errors in the process. Improvement of tax control and field verification, By using the fiscalization system, risk-based tax control and inspection are enabled, which will result in the direct identification of abusers, thereby avoiding inspections of compliant businesses. Citizen engagement, By verifying the invoices they pay—whether they have been declared in the tax system or not—citizens themselves help and become part of the fight against informality and the abuses of those who work in the black economy. We are also planning concrete rewards to encourage citizen participation in this process. Digitalization of the economy, Through improvements to the fiscalization software program, the opportunity to further digitize processes at points of sale is expanded, especially for the SME market in the country. This will lead to a less bureaucratic economy, with increased ease in the exchange of information between businesses and the government, as well as between businesses themselves. Source: General Directorate of Taxes.