In implementation of Article 102, paragraph 4 of the Constitution of the Republic of Albania and in implementation of Article 47 of Law no. 87/2019, dated 18.12.2019, “On the Invoice and Turnover Monitoring System,” the Minister of Finance and Economy directs:
Article 1
Purpose of the guide
This instruction aims to define the rules and procedures for issuing invoices and implementing the fiscalization procedure, in accordance with the legal provisions set forth in law no. 87/2019, dated 18.12.2019, “On the invoice and the circulation monitoring system” (hereinafter referred to as the “Law”). This instruction aims to unify and establish modern standards to ensure fair, equal, and impartial treatment, as well as transparency in the correct and proper implementation of the uniform procedures and rules defined by the Law.
The rules and procedures set forth in this directive aim to clarify the meaning of the Law's provisions, ensure their correct and uniform application, and encourage voluntary compliance by the taxpayer through his/her education.
Neni 2
Scope of work
1. According to Article 2 of the Law, the provisions of this instruction are implemented by all taxpayers who issue invoices in accordance with the Law and the applicable legislation on value added tax and determine their obligations for issuing invoices, timely implementation of the fiscalization procedure, as well as other obligations.
2. This instruction is implemented by public bodies, which are obliged to accept electronic invoices, in accordance with Article 25 of the Law, and if they also carry out economic activities, according to the applicable VAT legislation, for which they are considered taxable persons, the obligations from point 1 of this article also apply.
3. This instruction also applies to banks, non-bank financial institutions, and other entities that offer electronic bill payment services, under the obligation to notify payments according to Article 37 of the Law, and when they carry out taxable supplies according to the applicable value added tax legislation for which they are considered taxable persons.
Article 3
Definitions
For the purposes of this instruction, the terms used in this instruction have the same meaning as the terminology used in the law “On Invoice and Circulation Monitoring System”, the legislation in force for value added tax, the law on tax procedures in the Republic of Albania, and the tax legislation in force.
Article 4
Taxpayers who must issue an invoice
Taxpayers issuing invoices according to Article 4 of the Law are all natural and legal persons who are liable for profit tax, simplified profit tax, and/or value-added tax (VAT), including taxable persons subject to the small business scheme under current VAT legislation, regardless of the annual turnover achieved in the previous or current year.
For example, banks or other non-banking financial institutions are also considered taxpayers who issue invoices if they are subject to profit tax and if they perform other activities that are not exempt from the obligation to issue invoices, according to the legislation in force for value-added tax.
Non-profit organizations, project implementation units, central and local public bodies, political organizations, and similar bodies shall issue an invoice if they carry out economic activities.
3. In order to issue invoices and carry out the fiscalization process, taxpayers who issue invoices according to Article 4 of the Law, before starting to issue invoices, must:
a) to ensure conditions for the use of software solutions, according to Article 21 of this guide, and to obtain an electronic certificate from the National Agency of Information Society (AKSHI);
b) to provide information on all countries where business activities are carried out, in accordance with Article 17 of this directive;
c) to provide information about the operators issuing invoices, in accordance with Article 18 of this instruction; and ç) to provide information about the maintainer of the software solution, in accordance with Article 19 of this
instruction;
d) register electronic billing devices for issuing invoices for cash payments, in accordance with Article 17 of this instruction.
4. The taxpayer issuing an invoice, in addition to the obligation arising from point 3 of this article, for the purpose of implementing the fiscalization procedure, must also ensure prior to issuing the invoice:
permanent internet connection;
b) Certified software solutions that perform electronic signatures using an electronic certificate, real-time communication with the central tax administration information system through the creation and exchange of an XML formatted message, and invoice printing including a QR code.
5. The taxpayer issuing an invoice, in addition to the obligation arising from point 3 of this article, for the purpose of implementing the fiscalization procedure for recording sales through self-service devices (vending machines), ensures:
permanent internet connection;
b) Certified software solution, which performs electronic signing using an electronic certificate, real-time communication with the central tax administration information system through the creation and exchange of an XML message based on the content of sales data.
6. Where the person liable for VAT is a taxable person not established and registered in the Republic of Albania, where the VAT is to be paid, and the service is provided to a non-taxable person, the non-resident person must appoint a tax representative in the Republic of Albania as the person liable for VAT. In this case, the tax representative is responsible for issuing invoices and carrying out fiscalization procedures, in accordance with the Law and the instruction.
For example, a foreign taxpayer, a non-resident in the Republic of Albania, is obliged to issue an invoice and implement the fiscalization procedure when providing services to a taxable person residing in the Republic of Albania, when according to the applicable legislation on value added tax, they are obliged to pay VAT in the Republic of Albania for those transactions, through a tax representative.
A non-resident taxpayer who has registered a tax representative in Albania for VAT declaration and payment provides services to a public entity that is not a VAT taxpayer in Albania. The fiscalized invoice for these supplies is issued by the tax representative registered in Albania. If the public entity is itself registered as a taxable person for VAT, the invoice is issued and fiscalized by the public entity taxable person itself.
He is not obligated to issue an invoice and fiscalize it based on the Law when the buyer, who is a taxpayer resident in Albania, is obliged to pay VAT (i.e., when self-assessment applies), as in this case the buyer himself will issue the invoice (self-assessment) and it is the buyer himself who carries out the invoice fiscalization procedure.
7. All taxpayers, resident or non-resident, regardless of their form of organization, must issue an invoice when supplying goods or services to public bodies, except for:
a) when this taxpayer is exempt from the obligation to issue an invoice, according to Article 5 of the Law;
The public authority is subject to VAT and is obliged to issue an invoice as the buyer, i.e., the recipient of goods or services, in accordance with Article 7, paragraph 2, of the Law and in accordance with the legislation in force on value-added tax.
For example, a publishing company established in Italy sells books to a municipality in Albania. In this case, the seller's invoice is exchanged electronically and serves as a document in customs clearance procedures.
Another company founded in Italy provides consulting and training services to a public foundation established by law in Albania, which carries out economic activities for which it is registered in the VAT register. For this service received from the non-resident taxpayer, the public foundation is obliged to issue the invoice (self-billing), according to Article 7, paragraph 2, of the Law.
Article 5
Taxpayers who are excluded from the obligation to issue an invoice
1. According to Article 5 of the Law, taxpayers who are exempt from the obligation to issue and fiscalize invoices for the supplies they make are as follows:
a) agricultural producers, whether or not they are subjects of the compensation scheme in accordance with the VAT law;
b) Taxi operators equipped with meters and those selling tickets or subscriptions for passenger transport in the urban public transport sector within the city (buses) in accordance with the decision of local self-government units, if the taxi meter receipt, ticket, or subscription is issued directly to passengers by the driver or an authorized person;
(Amended by Instruction No. 27 dated 31.12.2021, published in the Official Gazette No. 3 dated 10.01.2022)
c) natural persons registered with the Tax Administration as “street vendors”.
2. Pursuant to Article 97 of the Law on Value Added Tax in the Republic of Albania, issuing an invoice is not required in the case of supplies of services exempt from VAT, according to letters “a” through “e” of Article 53 of this law.
For example, banks and other non-financial institutions are not required to issue an invoice for the provision of services exempt under the VAT law.
3. The persons referred to in points 1 and 2 of this article are not required to register the place of business activity, operators, the producer and maintainer of the software solution, or to fulfill any other obligation under the Law. However, if, in addition to these exempt activities, they carry out other activities for which they are required to issue an invoice under the Law, then they are required to issue invoices and apply the fiscalization procedure for those other, non-exempt activities and to fulfill all obligations under the Law. The taxpayers referred to in point 1, letter "b" must notify the tax administration of the total amount of tickets sold during each day for which an individual invoice has not been issued and fiscalized, in the form of a fiscalized summary invoice, no later than and before the close of the next day, for the calculation of VAT and other tax obligations, as well as for the fulfillment of other obligations under the Law.
4. When an individual makes an incidental sale, for example, performing a casual and non-recurring service for a taxpayer, selling gold or other personal property, if the transaction constitutes merely the exercise of ownership rights by its holder and is not registered in the commercial registry, then the buyer, who is a taxpayer issuing invoices, shall issue a self-invoice without calculating VAT in the case of purchases from unregistered individuals.
Article 6
General rules for issuing an invoice
1. Pursuant to Article 6 of the Law, every taxpayer must issue an invoice for the supply of goods and services. The invoice must be issued by the taxpayer who made the supply, but it can also be issued in their name and on their behalf by the recipient of the goods and services, i.e., the buyer (self-billing) or by an authorized third party (e.g., an accountant).
2. The taxpayer must issue an invoice for:
a) supplies of goods and services made to another taxable person or a non-taxable legal entity within the territory of the Republic of Albania;
b) any advance payment received by you before the aforementioned supplies of goods are made;
any advance payment for services received before the services are completed or performed;
c) supplies of goods dispatched to another country (export);
d) any other supply of goods and services in the territory of the Republic of Albania (e.g., applies to individuals – final consumers).
3. Rules for the fiscalization of invoices issued by non-residents in the Republic of Albania:
a) Persons without a permanent address in the Republic of Albania (non-residents) and not registered in the commercial register are obliged, through their tax representative, to issue and fiscalize invoices if the obligation to pay VAT arises in the Republic of Albania, according to the legislation in force for value-added tax.
b) if the non-resident company has a registered branch in the Republic of Albania:
All businesses registered in the Republic of Albania must issue and fiscalize invoices;
ii. Exceptionally, when the branch that the supplier has in the Republic of Albania does not participate in that supply, then the provision according to letter “a” of this point applies.
The tax administration monitors compliance with conditions for tax and/or fee deductions or exemptions based on fiscalized invoices, in accordance with relevant tax legislation.
5. Invoices for the sale of goods or the provision of services are the primary documents on which subsequent records for tax liability calculations are based.
Article 7
Special rules for issuing invoices
The taxpayer is obliged to issue an invoice and have it fiscalized for the use of goods that are part of the business's assets, for their private use or that of their staff, or for purposes other than their economic activity, if they have fully or partially deducted the VAT on the purchase of these goods or elements that make up the goods and must charge VAT on that supply, for the supply of goods produced, constructed, extracted, processed, purchased, or the supply of services during the development of their economic activity for use for the purposes of this activity or other similar supplies, for cases of self-supply according to the legislation in force on value-added tax.
2. In cases where buyers issue invoices, in agreement with the seller or when this is mandatory under Article 7(2) of the Law, the buyer also performs the invoicing procedure for the issued invoice. The same applies when the invoice is issued by an authorized third party or by the tax representative.
3. In cases of occasional supplies obtained from different individuals who do not have the status of traders, including agricultural producers who are not part of the compensation scheme, the taxpayer (i.e., the buyer) issues a self-invoice without calculating VAT. This invoice must be verified by the supplying individual through their signature and other identifying details such as name/surname and personal identification number, which must be recorded on the invoice. The taxpayer, as the recipient of the supply, is obliged to also note their TIN on the invoice prepared for themselves. The invoice issued by the buyer, who is a taxable person as a subject of Value Added Tax or Profit Tax or Simplified Profit Tax, is the document that justifies deductible business expenses for the purpose of calculating Profit Tax and Simplified Profit Tax.
For example, a commercial company pays a local or foreign individual (who is not registered with the Albanian tax authorities) for casual consulting services, translation, and similar services, etc. In this case, the company receiving the service prepares an invoice with the identifying data of the individual providing the service, the value of the service, and the tax withheld at source calculated for the payment of this service.
Article 8
Invoice release time
1. Based on Article 8 of the Law, the invoice is issued at the time of supply of goods or services, except in the following cases:
In the event that the buyer or recipient of goods or services issues a self-invoice without calculating VAT for goods or services purchased from individuals who are not traders and are not registered with the tax administration as taxpayers who issue invoices, as well as for goods purchased from agricultural producers, the invoice shall be issued by the buyer immediately at the time of delivery of the goods or provision of services;
b) In the event that the buyer or recipient of services issues a self-billing invoice for services provided by a non-resident taxable person, for supplies of services for which VAT is payable by the recipient of the supply, according to paragraph 2 of Article 86 of the Law on Value Added Tax, the invoice shall be issued by the buyer no later than the 10th day of the month following the month in which the service was rendered (unless the invoice is issued by the seller electronically and exchanged with the buyer via the central invoicing platform).
Even if the invoice is issued by the buyer, for example on May 8th, but it relates to services received in April, this invoice will be included in their purchase and sales records, and in the VAT declaration for April.
c) In cases where the buyer makes a prepayment before the seller provides the goods or services, the seller must issue an invoice immediately, but no later than 72 hours after receiving the payment. Therefore, once the money has been paid and is available in the seller's bank account, the seller has 72 hours to issue an invoice to the buyer.
For example, if the buyer paid the seller through their bank account on May 1st, and the seller receives it in their bank account on May 4th, then the seller must issue the invoice no later than May 7th.;
c) if the goods are supplied without transport, then the seller must issue the invoice when the goods are made available to the buyer.
For example, if goods are sold directly in the store, the invoice must be issued immediately when the buyer receives the goods.
If goods are supplied by transport, then the seller must issue an invoice immediately before the transport is carried out, as the invoice must accompany the transport of goods from their source to their destination.
In a “door-to-door sales” situation where the seller does not know exactly which buyer and which item will be purchased at the location, the sales invoice must be issued at the moment the goods are sold to the buyer.;
d) An invoice can also be issued periodically for goods or services supplied regularly and continuously, carried out between the taxpayer issuing the invoice and their client, within the same month in which the supplies were made. In this case, the invoice must be issued monthly, no later than the 10th of the month following the month in which the supply was made, and recorded in the sales books of the month to which the supply relates.
However, a periodic invoice cannot be issued for supplies made under public procurement procedures, when an electronic invoice must be issued, which must be issued after each delivery of goods or services, as agreed by the parties to the agreement;
dh) The taxable person performing a supply of services is obliged to issue an invoice for the supply at the time the service is performed.
2. For supplies in the case of telecommunications, broadcasting, and electronic services to non-taxable persons who have their permanent address or residence in the Republic of Albania, according to Article 29 of the law “On Value Added Tax in the Republic of Albania, as amended,” the foreign supplier, through their tax representative in the Republic of Albania, issues invoices and applies the tax procedure in accordance with the law at the time of supply, or may issue a periodic invoice no later than the 10th of the month following the month in which the services were provided.
(Restated by Instruction No. 22, dated 15.10.2021, published in the Official Gazette No. 163, dated 19.10.2021)
3. In cases where the taxpayer issuing invoices conducts various activities at the same address (e.g., a hotel that also has a restaurant, SPA, nightclub, etc.) and the customer pays for all services (e.g., for an overnight stay, SPA usage, restaurant consumption, etc.) at the time of departure, then the taxpayer issuing the invoice must issue separate invoices/orders for each supply of goods or services, and in each invoice, mandatorily state “order” as the payment method and “Tax Invoice/Order” as the title of the invoice. When the customer pays (e.g., at the time of departure), the taxpayer must issue a summary invoice to them, referencing all the separate invoices issued and fiscalized, as well as included in the summary invoice (i.e., including the NSLF of each separate invoice). The separate invoices referenced in the summary invoice will not be recorded in the taxpayer's sales ledger. The summary invoice will be recorded in the sales ledger and will be taken into consideration for VAT calculation purposes.
Example
A client arrives and books a hotel room on May 25th and checks out on June 5th. During this time, they receive services from the restaurant, sauna, SPA, etc., services that they charge to be settled on the hotel bill. For the individual invoices issued for each service from May 25th to June 5th, a summary invoice will be issued on June 5th which will be registered in the sales book for June, which will be taken into account for the calculation of VAT on sales for the month of June (the moment in which the service was performed and the summary invoice was issued). The summary invoice for hotel services contains the total amount calculated for all individual invoices issued for each service performed by the hotel until the client's departure from the hotel. It is important that the summary invoice refers to all individual invoices issued to the client.
If for special services rendered to the client during their hotel stay, the client has settled the invoice at the time the service was provided and has not charged it to the hotel stay bill, for example, they received restaurant service on May 30th and settled the fiscalized invoice, then this invoice will be recorded in the sales book for the month of May, the month in which the invoice was issued. These services are not included in the summary invoice issued to the client upon check-out on June 5th when they leave the hotel.
Exception: If a full or partial prepayment has been collected by the hotel at the time of hotel booking or at the time of the client's arrival at the hotel (May 25 or earlier), the VAT-inclusive invoice for the corresponding VAT shall be issued at the time of prepayment collection, in accordance with the provisions of the Law and this instruction, and shall be declared in the sales and purchase registers for the month in which the prepayment was collected (May or earlier, depending on the date the prepayment was collected). In this case, when the summary invoice (June 5) for the performed service is issued, the value of the VAT-inclusive invoice at the time of prepayment (May 25) will be reversed, and the VAT for the additional amount after the reversal will be calculated and declared.
For taxpayers performing bar, café, restaurant, and canteen services where drinks and food are consumed, the invoice must be issued at the same moment as the order is supplied to the customer. An order is understood as the order placed for each table, not by any person. Meanwhile, if customers at the same table place a second order, then upon delivery of the second order, a second invoice is issued, which may not be printed. Generally, if the customer does not pay immediately for each order but pays the total of the orders upon departure, then each separate invoice issued for each order must indicate “order” as the payment method, and the title on the invoice must be “Tax Invoice/Order”. At the moment of the customer's departure, when payment is made, the taxpayer must issue a summary invoice to the customer and fiscalize it, which must contain as a reference and include all previously issued and fiscalized separate invoices (i.e., the NSLF of each separate invoice). The fiscalized summary invoice will be recorded in the taxpayer's sales ledger and will be taken into consideration for VAT calculation on sales. In this case, each separate invoice/order and the summary invoice must be fiscalized at the time of issuance.
4. For the purposes of points 4, 5, and 6 of this article, the terms “tollon” and “single-purpose tollon” shall have the meaning:
“A ”coupon" is an instrument that is obligatory to accept as full or partial compensation for the supply of goods or services, with the intention of its use at a later time, when the supply of goods or services is realized. The supplier's identifying data are recorded on this document, including the terms and conditions of use of this instrument.;
“Single-purpose invoice” (NjQ) means an invoice where the place of supply of goods and services for which it is issued, as well as the VAT to be paid for these goods and services, is declared at the time of issuing the invoice.
Taxpayers who supply or resell tokens for a single purpose (e.g., fuel tokens) must issue and fiscalize invoices when the token is issued and for each resale of that token. The description of the goods supplied in these cases must be “token with a single purpose for ‘[name and quantity of goods or services]’ with serial number xxx”, and depending on the payment method (cash or otherwise) and the type of transaction (between two taxpayers, or transactions with the state body, or transactions with individuals), the invoice must be printed on paper or sent electronically. The serial number of the token will be the tax identification number of the issuer, the year of issue, and the sequential number of tokens issued during that year.
5. When a Gift Voucher (which has been declared for sale and registered at the time it was sold by its issuer or reseller) is used for the supply of goods or services to the final consumer, the recipient of the voucher (i.e., the taxpayer supplying goods or services) shall issue and register the invoice, and in the payment method section, must mandatorily add “Gift Voucher” and the serial number of the voucher. This invoice will not be considered in the buyer's purchase book and the seller's sales book for tax calculation purposes. In cases where the value of the goods supplied exceeds the value of the voucher, then for any additional payment made by the final customer above the voucher's value, it shall be declared on the same invoice issued for the supply. Therefore, the seller will not need to issue a separate invoice but simply needs to specify on the same invoice the exact amount paid with the voucher and by other payment methods. The additional amount paid by the consumer will be considered for tax calculation.
6. When the supply of goods is paid for with the taxpayer's company card, issued by the taxpayer supplying the goods, at the time of supply, the seller issues the invoice and the buyer's identifying information must be included on the invoice (TIN, name/company name). If a summary invoice is issued to the buyer by the last day of the month, based on individual supply invoices (for which the NSLF of the individual invoices must be referenced) during the month, and under these conditions, only the summary invoice will be considered for tax calculation. However, all invoices (for each supply and the summary invoice) must be fiscalized at the time of issuance.
7. The periodic invoice provided for in point 6 of Article 8 of the Law is an exception to the general rules and is provided for certain supplies of goods or services, which are supplied regularly or continuously, for example in the construction industry, for electricity supply, telecommunication service, water supply, monthly rental service, etc. The period may be a month or less than a month (for example, if the supply of services or goods starts or ends in the middle of the month). In this case, the taxpayer issuing the invoice must necessarily write on the invoice the date of the period to which this invoice relates (in which the service was provided) and the date of issue of the invoice will be the date on which the invoice was created and issued. The invoice will be recorded in the sales book and purchase book on the same date/period as the date/period indicated on the invoice, and not in the month of the invoice issue date.
Example 1
The buyer purchases a gift card at a store, which they then give to another person as a gift. The latter person brings the gift card to the seller's store and purchases items worth the amount written on the gift card. Instead of paying with cash or a credit card, they pay with the gift card. In these cases, the seller must issue and fiscalize two invoices: the first when the gift card is sold, and the second when the gift card is exchanged for goods or services. In the latter case, it is mandatory to write on the invoice that the payment method is a gift card (a gift card with a specific purpose). Only the first invoice will be considered for tax calculation and will be automatically saved in the seller's sales book (and in the buyer's purchase book, if the buyer is a taxable person).
Example 2
A taxpayer who owns a bar organizes a concert on the bar's premises and sells tickets that include two drinks redeemable at the bar. If all drinks available at the bar are sold at the same price and subject to the same VAT rate, this can be considered a toll for a single purpose (with a specified purpose). The invoice is issued at the time the ticket is sold, and the description of goods must state: concert admission and a toll for 2 drinks. VAT is charged on the amount received by the ticket seller. When the customer receives the two drinks at the bar, an invoice is issued and, for payment purposes, it is declared a single-purpose voucher (with a specified purpose). This final invoice will also be fiscally registered at the time of issuance; however, the amount will not be taken into account for tax calculation, because only the amount from the first invoice will be considered.
If the VAT rate is different for drinks and concert admission, then the taxable amount for drinks and concert tickets must be clearly shown on the invoice.
Article 9
General invoice data
The mandatory elements of an invoice are defined in Article 9 of the Law, and the mandatory elements of a VAT invoice are defined in the Law on Value Added Tax in the Republic of Albania.
2. The invoice issued and printed for the client must include the following elements in this order:
invoice number:
i. Title: “Tax Invoice”;
ii. Seller's name/full name;
iii. Seller's address;
iv. Seller's NIPT.
b) technical data of the invoice:
Date and time of invoice issuance (hour and minutes);
Invoice number;
iii. Operator's code;
iv. the place of business operations;
v. payment instructions, for example, the method of payment, the currency and exchange rate if the invoice is not issued in Albanian Lek, as well as payment deadlines if payment is not made at the time of invoice issuance;
buyer's details
Name/Full Name, Address, and Tax Identification Number. This information is only required if the buyer is:
a taxpayer, subject to profit tax, simplified profit tax for small business, or VAT, in accordance with the laws in force;
a legal person;
iii. an individual who purchases personal property valued at over 500,000 ALL; or
iv. in other cases, when the buyer requests that their data be noted on the invoice. c) data of goods and services supplied:
i. the quantity and description of goods sold and/or description of services rendered, as well as unit prices;
total amount;
iii. Additions or deductions applied (information on compensation or payment), if applicable;
iv. Total amount to be paid.
invoice amount:
i. the date or period in which the supply of goods or services was made or the date on which the payment was made, referred to in point 1 of Article 7 of the Law, insofar as this date can be determined and if it differs from the invoice date;
ii. a note on the applicable VAT law provision establishing the VAT exemption, or any note or legal provision when mandatory and required by the applicable value-added tax legislation;
iii. unique invoice identifier number (UIIN), expressed as an alphanumeric code;
iv. the issuer's security number (NSLF), expressed as an alphanumeric code; and
v. QR code with the corresponding data according to this instruction.
In addition to the elements of point 2 of this article, the invoice must also contain the following elements in special cases:
a) in case of export of goods outside the territory of the Republic of Albania and if the buyer is a taxpayer or a legal entity in their country of residence:
i. the tax identification number (issued in the buyer's country of residence);
ii. the buyer's first name/first name and last name; and
iii. Buyer's address.
b) in case of export of goods outside the territory of the Republic of Albania and if the buyer is an individual, who is not a taxpayer in their country of residence: their full name and the address where the goods will be sent.
c) when an invoice is issued by the buyer for supplies received from the seller:
the marking “self-billing”;
ii. Information on the unique identification number, the seller's first and last name, and address.
4. In addition to the mandatory elements specified in paragraph 2 of this Article, taxpayers who issue invoices may also include:
Article code according to the combined nomenclature of goods;
other data in the invoice in accordance with their needs.
5. Taxable persons must issue VAT invoices containing the elements described in the law on value added tax in the Republic of Albania, and printed invoices must have the structure specified in point 2 of this article.
6. The date and time of invoice issuance is the date when the invoice is created and printed or sent to the client electronically. In case of subsequent fiscalization, the date on which the invoice is actually issued (created and delivered to the client) must be the date of invoice issuance and not the date it is sent for subsequent fiscalization.
For the purpose of the fiscalization process, in the fiscalization message, a discount or price reduction must be reported for each item, regardless of whether a discount has been given for an individual item or for the total amount of the invoice.
8. For the purpose of fiscalization, the payment method is divided into 2 groups:
Please hand me the money, which has been completed with:
banknotes and coins;
ii. credit and debit card;
check;
iv. single-use only (defined purpose - single-use 21 CFR);
v. taxpayer's company records; orders (in special cases when a consolidated invoice is issued).
pages without money in hand:
from the taxpayer's bank account;
ii. factoring;
iii. Offsetting (e.g., between taxpayer accounts, accounts receivable/payable);
iv. transfer of rights or debts;
v. debt forgiveness;
vi. clearing in nature;
vii. Other pages without cash.
If the buyer pays using a combination of the above-mentioned payment methods, then it is mandatory to record the information for the amount paid with each payment method. However, it is not possible to issue an invoice for the combination of cash and cashless payments.
If the seller issues an invoice along with a payment order, which the client can pay directly from their bank account, or through their e-banking, or at other non-bank financial institutions, or similar, then the payment method will be considered cashless payment.
9. If payment is not made at the time of invoicing, then the payment deadline will be specified on the invoice (i.e., the last date of the period by which the invoice must be paid).
The invoice issued by the tax representative must contain the name and unique identification number of the foreign seller, as well as the name and Tax Identification Number (TIN) of the tax representative.
Pursuant to point 9 of Article 9 of the Law, invoices that have not been fiscalized according to this Law cannot be used as valid tax documents to justify business expenses. The buyer can verify if the invoice received has been fiscalized by simply scanning the QR code on the invoice or by logging into their account on the central invoicing platform and checking if the invoice is registered in their purchase book. If it is, this proves that the invoice has been fiscalized and registered in the central tax administration's database and can be recognized for tax purposes.
12. If the electronic device fails to generate a QR code due to a malfunction and the invoice is fiscalized, the latter shall be printed and given to the customer. This invoice will be considered an irregular invoice for the seller as it does not contain all the elements and is subject to the penalties defined in the law on tax procedures in the Republic of Albania, for irregular invoice elements.
Article 10
Invoice Unique Identifier Generation
The tax administration information system generates the unique invoice identification number (UIN) after the invoice verification process is successfully completed and sends it to the invoice-issuing taxpayer as confirmation of regularly received invoice information, pursuant to Article 20, paragraph 3, of the Law.
The NIVF determined in the manner described in this article is unique to each invoice.
3. The abbreviation NIVF is used for the unique invoice identifier marked on the invoice and is calculated using the IUU method (universal unique identifier).
The NIVF consists of 32 characters, which can be numbers from 0 to 9 and letters from “a” to “f”, expressed in five groups separated by a dash “-“, in the format 8- 4-4- 4-12.
5. Pursuant to Article 9 of the Law, for the implementation of the fiscalization procedure for issued invoices, a mandatory element of each invoice is, among other things, the NIVF, which uniquely identifies each invoice and confirms that the invoice has been registered in the database of the central tax administration.
6. VAT is applied to each invoice submitted individually at the time of invoicing, regardless of the invoice payment method (with or without cash).
Article 11
Invoice Issuer's Security Number Generation
1. The Invoice Issuer's Security Number (NSLF) is an alphanumeric code that confirms the link between the invoicing taxpayer and the issued invoice.
2. The NSLF is created by the taxpayer when they generate an invoice, meaning it is automatically generated by the software solution they use for issuing and fiscalizing invoices. They then send it to the central tax administration as an element of the invoice in an XML format message. After verification by the central tax administration's information system, the taxpayer must print the NSLF on the invoice or include it in the invoice sent to the buyer electronically, along with the other mandatory elements.
3. The NSLF is determined by the invoice information, which:
ensures the uniqueness of the invoice for:
unique taxpayer identification number (NIPT) of the issuer;
date and time of invoice issuance;
invoice number;
iv. code of the country where the business activity is exercised;
v. the code of the software solution used for issuing the invoice;
vi. electronic billing device code (for cash transactions);
vii. the total invoice amount;.
b) ensures the authenticity of the taxpayer issuing the invoice, using the electronic signature with the private key of the electronic certificate obtained from AKSHI for the purpose of fiscalization.
4. The NSLF for cashless invoices is determined in accordance with point 3 of this article, but does not contain information on the electronic invoicing device code.
5. If the invoice is issued through the central invoicing platform, in accordance with Articles 22 and 27 of the Law, then the NSLF is generated by the central tax administration's information system.
6. In case of self-billing, the NSLF is determined according to the buyer, who in these cases is also the issuer of the invoice.
7. The NSLF, as a mandatory element of the invoice, is used:
during the tax inspection to verify the issued invoice, where the taxpayer certifies, based on other elements of the invoice used for generating the NSLF, that they are the issuer of the invoice, meaning they actually issued the invoice in question, which may be with or without NIVF;
b) when the buyer wishes to verify the invoice in accordance with Article 35 of the Law and in all cases where an invoice has been issued without a VAT Identification Number.
8. In situations where, after verifying the invoice, it is determined that the taxpayer has issued the invoice only with an NSLF and without an NIVF, which means that he did not register the invoice with the central tax administration in the fiscalization process, and if he does not subsequently fiscalize it within the deadline provided by the Law, then the sanction measures prescribed by the Law on Tax Procedures in the Republic of Albania, as amended, shall apply.
9. When the fiscalization procedure for an invoice received by a taxpayer resident in the Republic of Albania from an outside seller for the import of goods mentioned in Article 20, points 7 and 10 of the Law is carried out, the VAT shall be determined according to the buyer's information in the manner mentioned in point 3 of this article, but without the information about the electronic invoicing device code.
For the calculation of NIVF, UTF-8 (Unicode Transformation Format) encoding is used.
8).
Electronic signature is performed using a valid electronic certificate for fiscalization, which has been issued to the taxpayer by AKSHI.
12. With the use of the cryptographic hash function MD5 (according to RFC 1321 MD-Message-Digest Algorithm standard), the following output is generated: 32 alphanumeric characters written in hexadecimal format (numbers from 0 to 9 and letters from “a” to “f”), which will be a mandatory element of the invoice and printed on the invoice.
Article 12
QR Code Generation
1. To easily ensure the verification of issued invoices, a QR code must be generated for all invoices. The QR code is a mandatory element of the invoice in cases where the invoice is successfully reported to the central tax administration and fiscalized (the invoice has received an NIVF), as well as in cases where the invoice cannot be fiscalized (due to lack of internet, unavailability of the fiscalization service server, etc.).
2. The QR code is printed on paper along with other mandatory elements of the invoice according to Article 9 of the Law for all invoices for cash payments, while for electronic invoices, the QR code will only be printed in cases of goods supply with transport, where the printed QR code serves as a transport document for the supplied goods.
3. The software solution used for issuing and fiscalizing invoices must automatically create a URL in the format specified in the technical specifications published on the website of the central tax administration.
Article 13
Additional data for the electronic invoice
Electronic invoice, according to Article 10 of the Law, has several additional elements, which are described in detail in the electronic invoice's instructions and technical specifications.
Article 14
Simple invoice
1. Simple invoices without VAT according to Article 11 of the Law may be issued if both of the following conditions are met:
a) the taxpayer issuing invoices is subject to the small business regime under the Law on Value Added Tax in the Republic of Albania; and
b) the invoice issued for goods or services supplied is paid in cash at the time of supply.
2. Invoices issued under point 1 of this article must contain a note stating that the taxpayer is not obligated to calculate VAT on sales of goods or services provided by them. This way, the buyer will be informed of the seller's status and whether the latter is permitted to issue a simple invoice without VAT.
3. Simplified invoices paid in cash must be printed on paper (unless they can be sent electronically according to point 3 of Article 23 of the Law). However, the invoice number, operator code, business activity country code, payment method, and exchange rate are not mandatory to be printed, but will be sent to the central tax administration along with other invoice elements during the fiscalization procedure, and the buyer will be able to use them by scanning the QR code on the invoice. As an exception, for currency exchange transactions, the currency and exchange rate must also be printed on the invoice.
Article 15
Invoice number
According to Article 12 of the Law, the invoice number, i.e., the invoice sequence rule, is determined independently by the taxpayer by choosing one of the following models:
a) Within each place of business activity, regardless of whether payment is made in cash or not. This means that each place of business activity of the taxpayer issuing invoices will have its own sequential invoice number, regardless of the number of electronic invoicing devices used at that place of business activity. At the end of the year, the last invoice number at each place of business activity must reflect the total number of invoices issued or related to that place of business activity;
b) at the level of each country of business operation and broken down by payment method (cash or non-cash) in each country of business operation. This means that invoices will have separate invoice numbers for cash invoices and for non-cash invoices, for each place of business.;
c) at the level of each electronic invoicing device for cash invoices at each business activity location and separately for each business activity location for non-cash invoices. This means that each electronic invoicing device at a business activity location will have its own invoice serial number, and for non-cash invoices, there will be a separate serial number for each business activity location to which the invoice relates.
2. The invoice number, at the beginning of each calendar year, or at the beginning of economic activity in a country where business activity is carried out, or at the beginning of the use of electronic invoicing equipment, or at the beginning of issuing invoices according to the Law, starts from number 1- the year number (for example, for the year 2021, the first invoice issued will have the number 1-2021) and continues without skipping the numerical order of numbers for each year individually, based on the rules of sequences approved according to point 1 of this article. The serial number is not mandatory to be approved by the central tax administration, as the numbering must start each year from number 1 and must follow the order 2, 3, 4, . n.
3. The invoice number format is as follows:
a) for invoices paid in cash: serial number – year the invoice is issued – electronic invoicing device code (e.g., 1-2021-m0256789as)
b) for invoices paid by bank transfer: serial number – year the invoice is issued (e.g., 1-2021).
4. For invoices paid in cash, the electronic code of the billing device is the one generated by the central tax administration in accordance with Article 17 of this instruction.
The purpose of the invoice number specified in this article is to track the number of invoices issued. NIVF must be used to uniquely identify each invoice and record them in the sales/purchase ledgers.
Article 16
Taxpayer data that issue invoices
In accordance with Article 13 of the Law, every active taxpayer required to issue invoices must be identified in the taxpayers' register in the database of the central tax administration as an invoicing taxpayer. As provided in the Law, this process will be automatic.
Article 17
Registration of the place of business activity and of electronic invoicing equipment
1. Registration of the place of business activity
1.1. The taxpayer issuing invoices must provide information to the tax administration for each place of business activity where invoices are issued, before starting to issue invoices at that place of business activity, in accordance with Article 14 of the Law. Taxpayers who are not obliged to issue invoices according to Article 5 of the Law are not obliged to provide information about their business activity locations to the central tax administration, as well as other information specified in the Law. Exceptions apply when a natural or legal person also carries out activities for which they are obliged to issue an invoice. In these cases, they must provide information for all places of business activity where invoices will be issued for the supply of goods or services that are not exempt from the invoicing obligation, as well as all other information specified in the Law.
All information about new places of business activity, as well as changes in existing data, will be sent through the central invoicing platform, which the taxpayer can access using the electronic certificate issued by AKSHI.
1.3. In cases where the taxpayer carries out more than one activity at the same place of business, they are required to enter the data of the main activity through the central invoicing platform, namely the activity that generates the highest revenue at that place of business, and also to enter the data for the other activities they carry out as auxiliary activities.
1.4. In cases where the taxpayer conducts commercial activities that operate 24 hours a day (bar, online store, smartphone applications, etc.), they may specify working hours as 00:00-24:00.
1.5. If the taxpayer operates in an area where it is not possible to establish a permanent internet connection and cannot report the information provided for in this article through the central invoice platform, then he may submit the information on the place of business activity via the form "Information on the place of business activity," which is attached as Appendix 1 to this guide, either in person or by mail to the Regional Tax Directorate where it is registered. The same form is used both to submit the information for the first time, as well as for submitting changes, but in the case of submitting changes, the form must only include the code for the place of business activity, the unique identification number of the taxpayer issuing the invoices, and the changed data.
1.6. If the taxpayer declares the vehicle used for carrying out business activities as the place of business (for example, for door-to-door sales of goods, passenger transport where tickets can be purchased on the vehicle, etc.), then they must also submit information about the vehicle's license plate (or any other vehicle registration number, if according to relevant laws there is no obligation to have a license plate, such as for ships).
1.7. After receiving the mandatory data for the business activity location, the tax administration information system generates a unique code for this location, displays it, and saves it in the registration confirmation, on the central invoice platform, and in the personal account of the taxpayer issuing the invoice. The implementation of this procedure does not mean the taxpayer will be issued a new TIN or a new serial number.
1.8. The country code for conducting business activities is an alphanumeric code, unique at the taxpayer level, consisting of 10 characters.
1.9. The country code of the place where the business activity is carried out, as mentioned in point 1.7 of this article, must be indicated by the taxpayer on every invoice issued and fiscalized.
1.10. The data for each location of business activity that must be submitted to the tax administration in accordance with point 1.1. of this article must include:
a) With regard to the type of location where the business activity is carried out, the taxpayer issuing invoices must specify whether it is a building, land, or vehicle, and also provide information on the intended use, such as trade, services, production/processing, storage, keeping or breeding of live animals, online trading, etc.
b) As regards the type of activity, the taxpayer issuing invoices must classify the type of activity according to the national classification of activities, specifying the main activities and any secondary ones, if any.;
c) Regarding the work schedule, the taxpayer issuing invoices must specify: the normal work schedule (for example, Monday through Friday), the work schedule on particular days of the week (for example, Saturday and Sunday, etc.), the type of work schedule for activities organized once, twice, or in another form (for example, holding seminars or sales at a fair during a specific period, etc.), information on exemptions from the normal work schedule on specific dates (for example, during holidays, etc.) or in other cases. In the case of online trading, the taxpayer may set the work schedule as 0 to 24 hours. In the case of a variable work schedule, the taxpayer must define the normal work schedule and in the notes field indicate that they have a variable work schedule and provide a brief description;
c) Regarding the closing date of the activity at the place of business, the taxpayer issuing invoices must mark the closing or cessation date of the activity only if they know this date at the time of registration (e.g., if it is a seasonal activity or a temporary activity, such as a 2-day seminar, fair, etc.);
d) With regard to the data on the area (square meters) of the business premises, the taxpayer issuing invoices must declare the area of the fixed space, which is the total area of the space used, including both outdoor (open-air) and indoor (enclosed) space at that place of business (for example, the indoor area of a restaurant and its outdoor area);
dh) With regard to data on the taxpayer's status and the location where business activities are carried out, the taxpayer must provide the following information:
The taxpayer's status is the same as the status the taxpayer has with the National Business Center or the tax administration;
Regarding the location where the activity is carried out, the taxpayer must indicate whether it is "open" or "closed.".
e) Regarding the declaration of the place of business, the taxpayer must choose one of the alternatives “owned,” “rented,” or “other agreements.” If the place of business is rented, the tenant taxpayer must register information about the landlord, specifically their personal identification number or TIN, as well as their first and last name.
1.11. Invoices can also be issued outside of business hours if, for example, there are still customers in the store at the closing time of the business, but these should be specific cases, and if they occur daily, then the taxpayer must submit information about the new working hours to the central invoicing platform.
1.12. Registration of the address where business activity is carried out in the commercial register, Registration of address changes and other information is a procedure separate from registering business activity locations under this article for fiscalization purposes and will not be affected by the provisions of the Law or this guidance. This means that the taxpayer will register changes in the commercial register or with the central tax administration, in accordance with the Law on Tax Procedures in the Republic of Albania and the relevant legislation, regardless of the obligation under this article.
2. Registration of electronic billing devices and self-service equipment (vending machines)
2.1. For fiscalization purposes, during the first connection of the electronic invoicing device or self-service device (vending machines) with the tax administration's information system, using the fiscalization service, the taxpayer issuing invoices must submit to the tax administration data on the electronic invoicing device used for cash payments and data on the self-service device (vending machines). This connection must be made no later than 24 hours before the issuance of the first invoice.
2.2. In the initial connection mentioned in point 2.1 of this article, the taxpayer submits the necessary information for the implementation of the fiscalization process, namely:
the country code where the electronic invoicing equipment is operated;
b) the serial number of the electronic billing device or self-service device (vending machine), as specified by the taxpayer, which the taxpayer is obliged to display on that device;
c) the software solution code used in the electronic invoicing device or self-service device to issue invoices and carry out the fiscalization procedure, which is generated by AKSHI during the certification procedure and must be integrated into the software solution by the software solution manufacturer (in this way, these data must be automatically filled in);
c) the code of the software solution maintainer that performs the maintenance service, which is generated by AKSHI after the maintainer's registration;
d) the date on which the electronic billing device or self-service device (vending machines) will be used;
e) the date until which the cash-in-hand electronic device or self-service machine (automat) will be in use (if known at that time); and
e) the type of electronic billing device: "standard" or "self-service (automated) device.".
2.3. Upon receipt of the information mentioned in point 2.2. of this article, the tax administration generates the electronic invoicing device code or self-service device code (vending machines), which is sent to the taxpayer through the same communication channel, directly to the electronic invoicing device or self-service device (automat) from which the data were sent pursuant to paragraph 2.2 of this article.
2.4. The code mentioned in point 2.3 of this article is a unique alphanumeric code, consisting of 10 characters. Electronic invoicing devices are used for issuing invoices for cash payments, so the code is printed in every case of issuing these invoices.
2.5. The reference mentioned in point 2.3 of this article must be included by the taxpayer issuing invoices in the number of each invoice issued for cash payments or in the case of sales through self-service devices (vending machines).
2.6. As a consequence of point 2.1. of this article, if the taxpayer carries out activity in a business activity location situated in an area where an internet connection cannot be established, in accordance with Article 31 of the Law, then they may send the data mentioned in point 2.2. of this article to the tax administration electronically on the central invoicing platform, or to the local tax administration office where they are registered, or where they have permanent residence, or by mail through the form “Registration of Electronic Invoicing Device”, which is attached in Annex 3 of this instruction. The same form is used for the registration of the self-service device, in the same circumstances. The form is used to send data for the first time, as well as to send changes and de-registration of the electronic invoicing device or self-service machine. The code of the electronic invoicing device or self-service device (automatic) will be kept on the central invoicing platform in the taxpayer's user account.
2.7. The registration of an electronic billing device for cash payments and a self-service device (vending machine) is done only at the beginning of use. If there is a change in the data presented in the first registration, in accordance with point 2.2. of this article, or if the electronic billing device for cash payments or the self-service device (vending machine) is no longer used, the taxpayer is obliged to report the change through the fiscalization service, or via the central invoicing platform, or in the form specified in point 2.6. of this article, before resuming the use of the device, within 72 hours from the occurrence of the change.
2.8. The same electronic invoicing device for cash payments with the same code cannot be used in more than one business activity location. If the business activity location is closed and the electronic invoicing device for cash payments is transferred from that business activity location to another business activity location of the same taxpayer, then first, the taxpayer must deregister this device and then re-register it with the data of the new business activity location, and the tax administration information system will generate a new electronic cash device code linked to the new business activity location code.
2.9. The data group presented in the request message for registering electronic billing devices for cash payments and self-service devices (vending machines), as well as the response message, are an essential part of this instruction and are defined in the technical specifications published on the Central Tax Administration's website.
Article 18
Operator registration
The taxpayer is obligated to provide information to the tax administration for each individual who will use the electronic invoicing device and issue invoices to consumers (e.g., cashier, waiter, seller, etc.), regardless of whether this individual is the taxpayer themselves or an employee working for the taxpayer.
2. If the electronic invoicing process is subcontracted to a private accounting firm, a tax consultant, or another person providing tax consulting or accounting services, then the operator is the taxpayer providing that type of service, acting as a third party authorized by the taxpayer to issue invoices on their behalf and in their name.
3. In the case of self-service equipment (vending machines), the operator is the taxpayer themselves, i.e., the owner of the self-service equipment providing this type of supply of goods and services.
4. The taxpayer presents the following information to the tax administration for each operator, according to points 1, 2, and 3 of this article:
a) the individual's first and last name and their personal identification number; the first and last name of the natural person/legal entity taxpayer, according to point 2 of this article, in cases of subcontracting invoicing activities, and their TIN (Tax Identification Number);
b) its NIPT in cases of self-service equipment; c) the invoice start date;
c) the date until which the reported person will be an operator, if this date is known at the time of registration.
5. The data referred to in point 4 of this article shall be submitted by taxpayers issuing invoices electronically to the central invoicing platform no later than 24 hours before the start of invoicing by the operator. An exception is made for cases where the taxpayer issuing invoices cannot use the central invoicing platform due to the lack of a permanent internet connection, as provided for in Article 31 of the Law. In this case, the data for each operator must be entered into the “Information on Operators” form, attached in Appendix 2 of this instruction, and submitted to the Regional Tax Directorate where the taxpayer is registered, in person or by mail, no later than 24 hours before the start of invoicing by the operator. The same form shall be used for the submission of data for the first time, as well as for the submission of changes to the data.
6. After submitting the data according to point 5 of this article, the tax administration information system generates the operator code, which is linked to the operator's personal identification number or NIPT.
7. The operator code is a special code that will be used to identify each operator issuing invoices. The code is generated by the tax administration information system after the operator is first registered in the system and is stored in the tax administration register. Once an individual is registered in the system as an operator, they will subsequently have the same operator code, even if they work for different taxpayers.
8. The invoice only displays the operator's code to protect the personal data of the person issuing the invoice in their capacity as an operator.
9. The operator code is also a mandatory element in each invoice message sent to the tax administration information system during the fiscalization procedure. This means that if two or more operators who issue invoices work with the same electronic invoicing device, each of them must enter their code on each invoice they issue.
The taxpayer issuing invoices must also provide information about the discontinuation of the operator's work, in the manner specified in point 5 of this article, within 24 hours after the change occurs.
Information regarding the operator code can be viewed by the taxpayer issuing invoices in the operator's registration confirmation, which is stored on the central invoicing platform, in their user account.
Article 19
Registration of software producers and maintainers
1. Every software producer and maintainer must register in the specific register of software solution producers and maintainers, managed by AKSHI. The registration procedure is described in the decision of the Council of Ministers.
2. Each taxpayer must notify the central tax administration of the software solution used for issuing invoices, as well as the manufacturer and maintainer of the software solution.
3. The software producer and software solution are registered with each fiscalization, as the data of the used software solution are an integral part of the data for fiscalizing the invoice. Meanwhile, the data for the maintainer must be registered during the registration of data for the place of business activity or at the level of each electronic invoicing device, if the taxpayer has different maintainers.
Article 20
Recording invoices in the sales book and the purchase book
Using the central invoicing platform, the taxpayer issuing invoices can check at any time:
all invoices issued, for which he has carried out the fiscalization process, i.e., which are registered in the tax administration database; and
b) all invoices in which he is listed as the buyer, i.e., which contain his TIN.
2. The data determined in point 1 of this article shall be displayed in the form of a purchase book and a sales book.
3. The taxpayer does not change the content of the invoice on the central invoice platform, but may include additional information on the registered invoice, in order to identify the relevant entry in the purchase book or sales book where the invoice should be declared.
4. The taxpayer issuing invoices can view irregularities encountered during the verification of invoice acceptance in their user account on the central invoicing platform, in accordance with Article 23 of this instruction.
The categorization of invoices into specific sections will be based on the invoice data. Categories that cannot be automatically assigned based on the invoice data will need to be manually changed by the taxpayer through the central invoice platform. However, the invoice value and other invoice data submitted to the tax administration during the fiscalization procedure cannot be changed on the central invoice platform.
Invoice data in the purchase and sales ledgers must be exactly the same as the data on the invoices issued to the buyer and cannot be changed on the central invoicing platform. If some of the invoice data is incorrect, the taxpayer who issued the invoice in question will need to issue a corrective invoice. Invoice values cannot be changed on the central invoicing platform or in the purchase and sales ledgers; if there is an error in the invoice amount (regardless of whether the invoice includes VAT or not), a corrective invoice must be issued.
Since the sales and purchases book is automatically completed, the taxpayer will only need to check it and provide additional information if necessary (for example, if the invoice is considered an investment).
Transactions that are not registered with the tax administration cannot be added to the books if the invoice has not been fiscalized. In this case, the buyer can report to the Tax Administration that a seller has issued non-fiscalized invoices, and the tax administration will audit that taxpayer. For imports, fiscalization will be based on the customs declaration sent by the customs administration to the tax administration.
The sales book and purchase book can be downloaded by the taxpayer from the central invoicing platform.
10. The time for issuing an invoice is defined by law, and after the fiscalization process is completed, the data must be automatically registered in the sales and purchase book, based on the invoice issue date or, if a summary invoice is issued, based on the period specified in the invoice.
11. If the buyer does not accept the electronic invoice at the time of its verification, sent by the seller through the central invoicing platform, then this invoice will not be recorded in the buyer's purchase ledger, but will only be recorded in the seller's sales ledger. The seller will have to issue a corrective invoice if they need to cancel the transaction from their sales ledger. Only in this case, the corrective invoice will not be recorded in the buyer's purchase ledger, as the original invoice being corrected is also not recorded in their purchase ledger.
If the buyer who rejected the invoice makes a full or partial payment of the rejected invoice through the banking system, then this invoice is automatically considered accepted and recorded in the buyer's purchase book, despite the prior rejection.
(Amended by Instruction No. 5, dated 23.02.2021, published in the Official Gazette No. 30, dated 26.02.2021)
Invoices fiscalized by entities operating in the fields of telecommunications, insurance, electricity, and water supply to end consumers, as well as monthly invoices related to long-term leasing agreements and similar invoices, which are issued continuously and based on a pre-existing long-term contract between the parties, will be deemed automatically fiscalized regardless of the buyer's status. In order to register invoices as described above in the purchase books, all buyer taxpayers must ensure they update/correct their data in the contract upon which the supply is based.
(Amended by Instruction No. 27 dated 31.12.2021, published in the Official Gazette No. 3 dated 10.01.2022)
12. The taxpayer may review the purchase book and the sales book. Despite this right to review the books, the taxpayer may not add to the books any invoices that have not been fiscalized or that do not include his NIPT.
13. Data from the purchase and sales books recorded up to the tenth day of the following month will be automatically declared if not declared by the taxpayer. This data will be used to complete and account for the VAT declaration of the respective month, regardless of whether the taxpayer has confirmed this data or not.
(Reformulated by Instruction No. 5, dated 02.23.2021, published in the Official Gazette No. 30, dated 02.26.2021)
Article 21
Fiscal devices and software solution for the implementation of the tax compliance procedure
Software solution for the fiscalization procedure
1.1. The software solution mentioned in Article 3, letter “k”, of the Law, means the software suitable for the implementation of the Law and this instruction used by the taxpayer, which is certified by AKSHI and the central tax administration.
1.2. The software solution for cash payments includes the following fiscalization services:
a) registration of an electronic billing device;
b) recording the initial cash balance and daily changes;
c) The fiscalization of issued invoices.
1.3. The software solution for cashless payments includes a fiscalization service for invoice fiscalization.
1.4. The software solution for self-service devices (vending machines) includes a fiscalization service for registering self-service devices and fiscalizing sales data.
1.5. Technical specifications for the software solution are published on the tax administration's website.
1.6. Fiscal (WORM) memory is not required for the fiscalization process. However, each issued invoice must be stored by the taxpayer issuing invoices, in their electronic information system (in the memory of electronic devices used for issuing invoices, or on another server, or in external memory) for the retention period determined by the Value Added Tax law in the Republic of Albania, to ensure that the invoice can be presented, if requested, within a reasonable time, in the same manner as if requested immediately, including in the case after the conversion process, in a screen-readable or printable format. It must be possible to verify that the information between the original electronic file and the readable document has not changed.
1.7. The requirement for a physically secure environment relates to the computer environment where the digital certificate is stored. IT companies must ensure that there are industry-standard access controls in place, which prevent the unauthorized extraction/export of the digital certificate.
1.8. The software solution can be used on any electronic device, regardless of the method of bill payment, and no authorization from the central tax administration or other authority is required for that electronic device. Also, invoices can be printed on any printer.
1.9. Each invoice will be fiscalized only once, in most cases by the issuer of the invoice, but in special cases defined by law, when the seller does not fiscalize the invoice, then the buyer must carry out the fiscalization procedure.
2. Testing the fiscalization system before starting to issue invoices
2.1. According to the Law, the taxpayer issuing invoices may carry out testing of invoice data and the invoice message to be sent to the tax administration during the fiscalization procedure, by obtaining the certificate for the test environment in accordance with Article 23 of this instruction.
2.2. The testing system shall be implemented through the procedure provided for in Article 23 of this instruction.
2.3. The testing of the messaging exchange process will be carried out in a test environment, by accessing the tax administration information system, in accordance with Article 23 of these instructions.
2.4. The process of testing invoice data information will be carried out according to the procedure mentioned in point 2.3 of this article, along with additional verification of invoice data, according to a specific set of rules and the return of a message indicating that the rules have been met.
Memory Requirements
3.1. Pursuant to Article 3, letter “k” of the Law, fiscal devices for the purpose of carrying out the fiscalization procedure for invoices on the sale of goods and provision of services paid in cash, consist of an electronic invoicing device capable of storing all information in secure.
3.2. Secure memory, respectively protected storage, must be a WORM (Write Once, Read Many) type, meaning that no data can be altered once written into memory and it must also not be possible to delete or overwrite the data, but the read functionality must be retained indefinitely and can be based either on hardware (e.g., SD card, fiscal memory or similar) or on a virtual secured partition of the device's existing memory.
3.3. The memory capacity must be at least 4 GB for each electronic money device.
cash for issuing invoices.
3.4. If secure virtual memory is used, the firmware for such a secured virtual memory must be signed with a valid certificate recognizable only by the manufacturer, meaning that it can only be loaded once during the manufacturing process. If such a certificate becomes publicly known, it will no longer be valid, and the manufacturer will have to upgrade/replace all such devices in the field.
3.5. In the case of a hardware solution or an electronic cash device with constituent software solutions and secure memory for issuing invoices and for the fiscalization procedure, or simply secured memory (external HW memory, i.e., secure card or similar), all component chips of the memory contacts or other media (except for the communication port) must not be accessible to users, i.e., to the taxpayer issuing the invoice. It is necessary to use a suitable non-removable material that will protect physical access to the media used for protected storage. The manufacturer must ensure that such a solution is protected from external attackers who may modify the stored data.
3.6. The producer of the software solution for electronic invoicing devices may choose to design or use other suitable and secure data protection tools, for example, third-party technology, where the WORM memory type is ensured by a standard production process (e.g., specialized SD cards). In case of using third-party technology (i.e. SD card), the communication between the third-party memory and the software solution must be encrypted, using suitable technology (i.e. PKI). The producer must ensure that all messages exchanged between the certified software solution and the protected storage cannot be modified, intercepted, copied, or otherwise tampered with before they are permanently written to the secure memory. The producer must ensure that an external attacker or external malware or virus software cannot interrupt the communication between the certified software solution and the secured memory, for example by creating a virtual secondary deletable memory or by any method to trick the software into storing data in any memory other than the secured memory.
3.7. The certified software solution producer must use the appropriate unique method for permanent data storage in the fiscal memory. If an external certified software solution (cloud application) is used for issuing invoices and the fiscalization procedure, it must communicate in an encrypted manner with the secure memory.
3.8. The digital certificate issued by AKSHI must be copied to secure memory. The secure memory shall contain space for at least 20 authentication and identification data (digital certificates), where only the latest authentication and identification data sets are always used. The uploaded authentication and identification data must be accessible by default.
3.9. The taxpayer's digital certificate (part of the authentication data) must be used when signing data messages only from secure memory, and if the memory is not accessible, the taxpayer cannot sign the data message.
3.10. In case there is no free space left for the secure memory to be filled, the software solution will not allow the taxpayer to create, issue, and print invoices that must otherwise be stored in the protected memory, until such filled memory is replaced with new memory. The taxpayer must store the filled memory for the entire period for storing invoices, in accordance with the Law's requirements. The software solution must have a warning mechanism so that the taxpayer can replace or add additional memory if necessary.
3.11. Verification of memory requirements described in this article will be part of the certification procedure for the invoicing software solution and the fiscalization procedure.
Article 22
Electronic certificates
The procedure for obtaining a digital certificate for the authentication of the taxpayer issuing invoices and for the electronic signature of any fiscalization message is described in the Decision of the Council of Ministers.
Article 23
Implementation of the invoice fiscalization procedure
The process of data exchange between the taxpayer issuing invoices and the tax administration
The process of exchanging data between the taxpayer and the tax administration information system for the purpose of invoice fiscalization begins when the operator creates an invoice on the electronic device, which will be issued to the buyer.
1.2. The data exchange process, according to point 1.1 of this article, consists of the following steps:
a) The taxpayer's entry point (which can be the electronic device used or the information system used) prepares the invoice information and, based on it, calculates the invoice issuer's security number (NSLF);
b) The taxpayer's entry point issuing invoices must prepare the XML request message and sign it electronically with the private key of the application's electronic certificate, issued to the taxpayer issuing invoices for the purpose of fiscalization;
The taxpayer's entry point that issues invoices initiates a secure one-way communication, while the tax administration server presents itself with the server certificate;
c) after secure communication has been successfully established, a call to the fiscalization service is made;
d) the tax administration information system receives and processes the request message. If the request is processed successfully, the tax administration system prepares an XML response message containing the NIVF, electronically signs it with the private key of the digital certificate application, and sends it to the taxpaying entity's access point that issues invoices;
dh) the taxpayer's entry point that issues the invoice receives a response message and verifies the electronic signature with the public key of the application's electronic certificate;
e) the operator issuing the invoice will then print the invoice and hand it over to the consumer (for cash transactions) or send the invoice electronically to the consumer (for non-cash transactions, as defined in Articles 24 and 25 of the Law), with the VAT number as one of the mandatory elements of each invoice.
Issuing invoices when an error occurs during the fiscalization process
2.1. If the following error occurs when processing the request message as per paragraph 1 of this article, a system error occurs during request processing, or there is a technical error, or the error relates to the digital certificate, the central tax administration information system shall return an XML message as a response to the taxpayer's electronic device issuing the invoice, which contains the error description. In this case, the response message does not include the NIVF and:
The operator at the electronic billing device gives the invoice to the client without VAT;
b) The operator of the electronic device that issues electronic invoices or the software maintainer shall correct the error and repeat the process until NIVF is obtained. The repeated XML message must be the same as an additional note, indicating that it is a repeated action. If this note is missing or NSLF is different from the NSLF printed on the issued invoice, the message will be registered as a completely different invoicing process. In the case of a cashless transaction, when an electronic invoice must be issued, only after the invoice has been successfully fiscalized can the seller issue and send the electronic invoice to the buyer.
2.2. The process of issuing customer invoices in the case of cash transactions must not be hindered by a system or technical error. However, the taxpayer issuing invoices is obliged to repeat the process mentioned in point 1 of this article and submit the message afterwards, no later than 48 hours from the moment of issuing the invoice without VAT.
2.3. If, during the processing of the request mentioned in point 1 of this article, any other error mentioned in point 9 of this article occurs, apart from those mentioned in point 2.1 of this article, the central tax administration's information system will return a response, an XML message, which contains an error description. In this case, the response message will not contain an NIVF and the operator cannot issue the invoice to the client until the error is resolved and the procedure mentioned in point 1 of this article is repeated.
2.4. Only when the taxpayer issuing the invoice receives the correct response message from the tax administration information system containing the NIVF, can they be sure that the invoice has been reported to the tax administration.
2.5. Taxpayers who, according to the Tax Procedures Law, are on the passive register of the tax administration, shall not issue or receive invoices for business purposes, unless they change their status. The same applies if taxpayers have applied for de-registration of business activity and have de-registered their business activity.
Maximum response message retrieval
3.1. The maximum time (time limit) that the taxpayer's entry point issuing the invoice needs to wait for a response message from the tax administration's information system is determined by the taxpayer themselves.
3.2. The taxpayer issuing the invoice must make a time assessment, taking into account the type and availability of the internet connection they use and the acceptable time for receiving a response. The assessment must also consider the maximum time of 2 seconds during which the tax administration's information system must process the request message and return the response message (the time from when the request message enters the system until the response message leaves the system).
4. Data group for fiscalization
4.1. The data group for the invoice fiscalization process, which is sent during each invoice fiscalization process to the tax administration information system, is specified in the functional specifications of the fiscalization service, published on the central tax administration website.
4.2. The procedure for the fiscalization of imported goods will use the data submitted to the tax administration by the customs administration in the customs declaration. Therefore, the fiscalization of invoices from abroad will be based on pre-filled data, and the taxpayer will only need to add the missing information, as per Article 25 of this Instruction, from the foreign taxpayer's invoice. Fiscalization will be based on the customs declaration, so the obligation to fiscalize the invoice arises only after the customs declaration has been received.
5. Protocols and security mechanisms for message exchange
Taxpayers issuing invoices must provide hardware and software support for message exchange with the tax administration's information system access point, as well as for the implementation of the fiscalization procedure.
5.2. The selection of equipment is the responsibility of the taxpayer, and this information does not need to be reported to the tax administration. The selection of software is also the responsibility of the taxpayer, but they may only choose software that is certified by AKSHI and the central tax administration. Information about software manufacturers and the chosen software solution must be reported to the tax administration:
during the first test registration in the electronic invoicing device fiscalization system for cash transactions;
b) in the form “Information on the place of business activity,” as defined in Article 17 of this instruction at the level of each place of business activity (only the software solution maintainer) and for cash transactions in the form “Registration of electronic invoicing devices,” as defined in Article 17 of this instruction, when the taxpayer issuing invoices carries out business activity in an area where there is no internet connection;
c) if element i is mandatory, in each request message during the electronic invoice fiscalization procedure.
6. Online Applications
6.1. In order to connect to the tax administration's information system, the taxpayer issuing invoices must meet the following online requirements:
a) Network type: Internet;
b) The required open TCP (Transmission Control Protocol) ports per CIS – 8849;
Sufficient internet speed.
6.2. The taxpayer issuing the invoice independently determines the appropriate turnover based on the number of messages per second at the time of maximum load.
6.3. The taxpayer's software solution for carrying out the fiscalization procedure defined in Article 21 of this instruction must meet the following conditions:
a) IS-Client Creation Standards;
b) Service document type – verbatim; and
c) SOAP/HTTPS Application Protocol (SOAP 1.1).
7. Communication Protocol
7.1. The tax administration's information system, for the purposes of the fiscalization procedure of issued invoices, is available in two environments:
a) trial environment; and
b) production environment.
7.2. The testing and production environments of the tax administration information system differ from the different entry point addresses and certificates.
7.3. The Electronic Certificate Registry of AKSHI will be the PKI provider, and AKSHI will issue two different certificates for the testing and production environments.
7.4. The use of the certificate by the tax administration information system at the point of entry is:
a) establishing a secure connection with the information system;
b) electronic signature of messages.
7.5. Information exchange between the information system and the taxpayer's entry point issuing invoices is done through a web service using XML messages.
7.6. Communication with the information system is protected by secure encryption in the transport layer.
7.7. Taxpayers issuing invoices access the tax administration's information system (CIS), initiating a secure one-way connection.
7.8. Using a secure channel, taxpayers exchange messages with the tax administration's entry point.
7.9. Data exchange is synchronous, meaning the entry point immediately responds to the user's request.
7.10. The format of the message set for request data and response data for the invoice is specified via an XML schema, the schema of which is specified in the technical specifications published on the official website of the tax administration.
8. Verification of messages received from the tax administration information system
8.1. After receiving the message from the taxpayer's entry point that issues invoices during the fiscalization procedure, the tax administration's information system develops the verification procedure based on the predetermined requirements that the received message must fulfill. The verification process for all received messages can be divided into two categories:
a) verification performed immediately after receiving an XML message and before the message is stored in the database (real-time verification);
b) The verification that takes place afterwards, after the issuance of the NIVF and the sending of the reply message to the taxpayer's entry point, as well as after the message is stored in the database (secondary verification).
8.2. Real-time verification includes:
a) verification of authorization (i.e., electronic signature verification and electronic certificate verification);
b) formality verification [verification of the XML message against the described XML schema, including verification if the taxpayer has completed all the required elements by the schema and verification of the message size (it must not be larger than 150 kB and not more than 1000 items)];
c) Base verification (i.e., verification of submitted invoice data), which includes:
i. Verification of whether the taxpayer issuing the invoice is VAT registered, and then verifying that no VAT is charged, if the taxpayer is not VAT registered;
ii. Verification of the method of payment, i.e., whether it is in compliance with the maximum payment amount provided for in accordance with the law on tax procedures in the Republic of Albania;
iii. verification of “self-billing,” i.e., the buyer's fields must be completed.
8.3. Secondary verification includes:
a) control of time differences between the invoice issue time declared on the invoice and the time of fiscalization, compared to the average time interval and the time limits defined by law (48 hours or 5 days);
b) Invoice number control (e.g., number structure, serial number, repetition of the same number, etc.);
c) numerical control for VAT purposes (for example, taxable base, VAT amount, total amount including VAT, etc.);
c) numerical control in general for the correctness of the data presented;
d) checking the corrective invoice and the corresponding amended, i.e. corrected, invoice;
dh) verification of whether the taxpayer issuing invoices is in the passive taxpayer register;
e) other controls (control of the electronic invoicing device code, control of the operator code, control of the business activity location code, control of the software solution code, control of the NSLF, etc.).
8.4. If an error occurs during the real-time verification procedure, the tax administration information system shall not generate the NIVF and shall prepare a response message with the description of the encountered error, digitally sign it, and send it to the entry point of the taxpayer issuing the invoice, who shall then perform the procedure as defined in point 2 of this article.
8.5. If an error occurs during the secondary verification procedure, the tax administration information system prepares a response message with the NIVF reference of the verified invoice and the description of the error encountered, digitally signs it, and sends it to the invoice issuing taxpayer, to their user account on the central invoice platform. The invoice issuing taxpayer is obliged to correct the error and, if necessary, depending on the type of errors, issue a corrective invoice, before closing the sales and purchase book for the month in which or for which the invoice is issued, repeat the fiscalization process, and send the corrected invoice to the buyer.
9. Error Message List
9.1. During the tax process of an issued invoice and the real-time verification process according to point 8.2 of this article, the tax administration information system may send one of the following error messages:
a) technical issues that must be repaired by the software manufacturer or maintainer:
– the exclusion occurred during the extraction of the received XML message during the size check;
– the exception occurred during the retrieval of the received XML message during the XML validation against XSD;
The received XML message did not perform XSD validation.;
– the exception occurred during the extraction of the received XML message during the signature check;
- The received XML message is missing the XML signature element;
The received XML message is missing the XML element “RegisterInvoiceRequest”.;
- exclusion occurred while extracting the XML signature element during signature verification;
ensures more than one XML signature element;
the wrong XML element was signed;
– incorrect signature method specified;
– wrong method of canonization;
– wrong dissolution method;
incorrect cryptographic signature;
the calculation of the remainder is incorrect;
wrong general signature;
– Too many key elements (keyInfo);
software solution code is missing.
b) Material issues and substances to be corrected by the taxpayer:
– The received XML message exceeds the allowed size (if there are many items on the invoice and consequently the message is larger than 150 kB, the taxpayer issuing the invoice, instead of one, issues two or more invoices to meet the message size requirement);
– the issued certificate is not of type X509 (in this case, the taxpayer issuing invoices must obtain a new digital certificate from AKSHI);
– the issued certificate is invalid (in this case, the taxpayer issuing invoices must obtain a new digital certificate from AKSHI);
– The certificate has not been issued by AKSHI (in this case, the taxpayer issuing invoices must obtain a new digital certificate from AKSHI);
– the certificate has expired (in this case, the taxpayer issuing invoices must obtain a new digital certificate from AKSHI);
– cross-reference NIPT in XML with NIPT in the certificate (the taxpayer issuing the invoice must use a valid digital signature or obtain a new digital certificate from AKSHI. In cases where the issuer is an authorized third party, then this must be registered with the central tax administration);
– the invoice amount is too large to be paid in cash (meaning the total invoice amount is higher than the maximum amount that can be paid in cash in accordance with tax procedures law. Therefore, the buyer cannot pay in cash, and the taxpayer issuing the invoice must issue an electronic invoice, according to Article 24 of the Law);
The seller is not subject to VAT (this means the seller cannot charge VAT on the invoice, unless they are registered in the VAT register, or if they are not permitted to do so by the VAT law);
– The seller is subject to VAT (this means that the seller must charge VAT on the taxable amount declared on the invoice, unless the actual supply of goods or services is exempt from tax, according to the VAT law. In the latter case, the taxpayer issuing the invoice must indicate on the invoice the applicable provision of this law that provides for the exemption);
c) Internal server error – system error during request processing. In this situation, the taxpayer issuing invoices should repeat the fiscalization procedure at a later time.
9.2. During the invoice fiscalization procedure and the verification procedure based on point 8.3 of this article, the tax administration's information system may send one of the following error messages:
a) The invoice issuance time deviates from the average time interval (this is more of a warning message, so that the taxpayer can check if the date and time set on the device or software solution used for invoice issuance are correct and up-to-date);
b) the invoice issuance time is outside the deadlines set by law (the taxpayer issuing the invoice will check if the date and time set in the device or software solution used for invoicing are correct and updated, and will notify the Tax Administration of the reasons for this deviation, if they have not already done so);
The invoice number is incorrect (the taxpayer issuing the invoice must check the invoice number structure and sequential number, and correct the error);
c) the invoice with this invoice number has been previously issued and fiscalized (the taxpayer issuing the invoice must check that invoice and if this has been caused by a double fiscalization error, they must issue a corrective invoice with a negative amount and fiscalize it. In other cases, they must act according to the encountered error);
The total amount of the invoice is incorrect (the taxpayer issuing the invoice must check the calculation of the invoice amount and issue a corrective invoice, and then fiscalize it);
dh) the VAT amount is incorrect [the taxpayer issuing the invoice must check the calculation of the VAT amount (e.g., the VAT rate applied, the VAT calculated for each item, and the VAT amount per taxable rate, etc.) and issue a corrective invoice, as well as to fiscalize it];
e) The software code is incorrect (the taxpayer issuing the invoice must check the code and correct it if it is incorrect or contact the software manufacturer);
e) the country code for the place of business activity is incorrect (the taxpayer issuing the invoice should check the code sent in the XML message to the central tax administration and the one generated by the information system of the tax administration stored on the central invoice platform and correct it if it is not correct or check the data on the place of business activity stored on the central invoice platform);
f) the operator code is incorrect (the taxpayer issuing the invoice must check the code sent in the XML message for the tax administration and the one generated by the information system of the tax administration stored on the central invoicing platform and correct it if it is not corrected or check the data for the operator stored on the central invoicing platform);
g) the electronic invoicing device code is incorrect (the taxpayer issuing the invoice must check the code sent in the XML message to the tax administration and the one generated by the tax administration's information system stored in the central invoicing platform and correct it if it is incorrect or check the data in the device stored in the central invoicing platform);
gj) the reference of the corrective invoice does not exist (the taxpayer could have, first, fiscalized the corrective invoice before fiscalizing the original invoice to which it relates or made an incorrect reference, and must correct these irregularities, i.e., fiscalize the original invoice or correct the reference to the original invoice);
h) corrective invoice and original invoice from different taxpayers (the original invoice and the corrective invoice that corrects it and has a reference to it, must have different data for the seller who issued the invoice, so the invoices must be corrected);
The NSLF is incorrect (this is a technical issue that must be corrected by the manufacturer or maintainer of the software solution used for issuing the invoice);
j) the seller is in the passive registry (this means that the seller cannot issue an invoice before reactivating their status with the central tax administration, according to the procedure provided for in the law on tax procedures in the Republic of Albania and its subordinate acts);
The buyer is in the passive register (meaning the seller cannot issue an invoice to that buyer until the buyer activates their status with the central tax administration, according to the procedure stipulated in the law on tax procedures in the Republic of Albania and its by-laws);
l) others.
Article 24
Fiscalization of foreign exchange transactions
1. Authorized currency exchange offices shall issue a simplified invoice with the content provided for in Article 11 of the Law and carry out the fiscalization procedure when conducting currency exchange transactions, as well as other obligations according to the Law.
Authorized exchange offices are obliged to convert the amount of foreign currency purchased into the equivalent of Lek at the exchange rate at which the purchase transaction was carried out, and the declared Lek equivalent for the purpose of invoice fiscalization must be expressed on the fiscalized invoice, with a “-” sign before the amount of money.
3. For foreign currency sales transactions, authorized exchange offices are required to report the amount of money in Lek received from the client for fiscalization purposes. In this case, there is no need to declare the “+” sign before the cash amount.
4. The invoice, after fiscalization, will be printed and given to the client. It will show the amount in Lek, with the corresponding sign, which is also sent electronically to the tax administration's information system during the fiscalization procedure in an XML message.
5. The invoice must also show the commission amount separately, if applicable, and the final amount in ALL must be declared without the percentage that, for example, an exchange office may charge the client for the exchange service. Therefore, essentially, the total amount in ALL must be the exact amount received from or given to the client for the foreign currency exchange. 6. The content of the invoice for currency exchange service is as follows:
No. Description Sample Data
.
1 Title: “Simplified Invoice”
2 Invoice Number (not required to print) 1-2020-bf132he962
Operator ID (does not need to be printed) ab1258697d
Country of business activity (no need to print)
er5236879
5 Payment Method (not required to print) Cash
Sum of currency (“-” for foreign currency purchase, no sign for foreign currency sale)
(-) 36.703,26
7 Invoice Date 10.5.2020.
8 Invoice Release Time 15:05:01
9 NIPT-i and taxpayer (who has the exchange office) L120345I
10 Taxpayer Name Currency
11 Taxpayer's address Toptani Street 3
12 Taxpayer City Tirana
13 Taxpayer's Registry Albania
14 Buyer's Tax ID (if taxable person) L123456P
Buyer's name (if taxable person) Jeronimo
Buyer's address (if taxable person) Streetxxx
Buyer's city (if taxable person) Tirana
Sellers and buyers (if a taxable person) Albania
19 Article Description Foreign Currency Purchase/Foreign Currency Sale
Currency (abbreviation according to the exchange rate list published on the official website of the Bank of Albania) Foreign currency to be exchanged (EUR, USD, HRK…)
21 Amount of money to be exchanged 300
22 Commission: 1%
Exchange rate 123.58
Total amount in LEK 37,074.00
25 Total amount paid by the consumer 36,703.26 LEK
Declaration: Exemption from VAT based on Article 53, letter “d”, of Law no. 92/2014 “On Value Added Tax in the Republic of Albania”, as amended.
27 NSLF 877246-3432-523235-
23525
28 NIVF 121-4545-55435-
23435235-252
29 Kodi QR
Example 1.
Foreign currency purchase (in cash)
The currency exchange office received a request from an individual to exchange 100.00 EUR into LEK. The currency exchange office must issue an invoice for the exchange service, tax-stamp it, print it, and give it to the client. The commission charged by the currency exchange office is 1%.
Invoice-Th
Coin
Morat Toptani Street 1, Tirana, Albania J43675678H
Date and Time: 05/08/2020, 20:01:24 Amount in LEK: – 12,201.75 LEK
Services
Coin
Exchange Rate Amount Total Amount in LEK
Foreign currency purchase
Euro
100
123,25
12.325,00
12,201.75 LEK
Commission: 1% (123.25 LEK)
Total amount paid to client:
NSLF: 877246-3432-523235-23525
NIVF: 121-4545-55435-23435235-252
Albania,
Exempt from VAT based on article 53, letter “d”, of law no. 92/2014 “On value added tax in the Republic of
changed.
Example 2.
Foreign currency exchange (cash)
The exchange office received a request from an individual who wishes to buy 100 EUR. The exchange office must issue an invoice for the exchange service, fiscalize it, and print it
and give it to the client.
Coin
Invoice-Th
Morat Toptani Street 1, Tirana, Albania J43675678H
Date and Time: 05/08/2020, 20:01:24 Amount of LEK: 12,325.00 LEK
Services
Coin
Exchange Rate Amount Total Amount in LEK
Foreign currency sales
Euro
100
123,25
12.325,00
Total amount paid to the customer: 100.00 EUR
NSLF: 877246-3432-523235-23525
NIVF: 121-4545-55435-23435235-252
92/2014
changed.
Exempt from VAT based on article 53, letter “d”, of law no. “On Value Added Tax in the Republic of Albania”, of
7. The data group for the invoice's fiscalization process, which is sent during each invoice fiscalization process for currency exchange service in the tax administration's information system, is specified in the functional specifications of the fiscalization service, published on the central tax administration's website.
Article 25
Fiscalization of foreign invoices for imported goods
1. According to article 20 of the Law, taxpayers subject to VAT, or profit tax, or simplified profit tax, must register for tax purposes any invoice received from a foreign person who is not a resident of the Republic of Albania.
The fiscalization procedure will be carried out on the central invoice platform.
3. In the taxpayer's (importer's) user account on the central invoicing platform, data from the foreign person's invoice are visible based on the customs declaration. The taxpayer (importer) for each invoice, based on the declaration's serial number, for each customs office assigned when the declaration was accepted, adds the following data directly to the platform:
seller's name;
b) the seller's tax identification number;
c) Seller's address (street, city, country);
c) the code of the country where the taxpayer's (importer's) business activity is carried out, which relates to the goods supplied;
d) type of invoice (paid in cash or not in cash); dh) invoice number (from the non-resident invoice);
e) Article code according to the combined nomenclature of goods; f) Date of invoice issuance;
f) payment method; and
g) description of the unit, unit of measure, quantity per unit, and price per unit, where only product group data is determined in the declaration data.
The importer must carry out the fiscalization procedure, according to this article, after the goods are placed under the free circulation procedure by the Customs Authority, but no later than 3 days after the goods are placed under this procedure.
5. After fiscalization, if the verification was successful, the tax administration's information system generates the NIVF, which will be stored in the taxpayer's (importer's) purchase book on the central invoice platform, along with other data from the foreign person's invoice.
6. In case of review of the customs declaration, as a result of customs re-evaluation or post-customs clearance control, within the period defined in the customs code, the buyer who has completed the fiscalization process shall immediately correct the invoice data on the central invoice platform based on the reviewed customs declaration.
Example of the procedure for the fiscalization of an import goods invoice:
An Albanian taxpayer makes a purchase abroad (Italy). The foreign supplier's invoice must be fiscalized by the importer by carrying out the fiscalization procedure as follows:
- The importer arrives at the border, the customs authority issues the customs declaration, charges import VAT, and sends the data from the customs declaration to the tax administration information system in XML format.;
- Some of the customs declaration data (specified in the table of this example) will be transferred from C@TS to the central invoicing platform;
The taxpayer (importer) will have to access the central invoicing platform using their electronic certificate issued by AKSHI, and within their user account, there will be a dedicated field related to the fiscalization of invoices for imported goods.;
- The taxpayer will click on this field, and a list of all imported goods will open, meaning the customs declaration received. They will need to check them one by one to add missing information and legalize it. The search will be based on the combination of the sequential number of the declaration for each customs office with the declaration registration date.;
- After selecting a customs declaration, the application will display the data specified in the table below, and the taxpayer will need to add this information:
Seller's Name;
- Seller's tax identification number, issued in their country of residence;
- Seller's address (street, city, state);
- The country code of the place of business activity, to which the foreign invoice relates, i.e., in which the goods were supplied;
- Invoice type (paid in cash or cashless);
Invoice number (the invoice number located on the foreign invoice);
- Date on which the invoice was issued by the foreign seller;
- Payment method (i.e., how they will pay this bill); and
Information for each item purchased and placed on the foreign invoice, the description per unit, the unit of measure, the quantity per item, and the price per unit, in situations where only product group data is specified in the declaration data.
- After adding the data, he must save it and click “fiscalize”.
At this moment, the tax administration's information system will automatically create the NSLF and NIVF codes, and will register them in its database and purchase ledger based on the “date of receipt of the declaration.”.
The VAT amount will be taken from the customs declaration, so the taxpayer will not have the opportunity to change it.
Customs declaration information obtained from the Tax Administration Information System in XML format, to be used in the Central Invoice Platform - Field of fiscalization
Name Description Values Name
Registration Number: Sequential number of the declaration for each customs office: R 0001 –
Registration Date Declaration Registration Date –
Declaration Number. The sequential number of the declaration for each customs office. This number is assigned when the declaration is accepted. P 0001 .... -
DateReceived Date of declaration receipt. Date of invoice issuance
NIPT-i Taxpayer NIPT-i Buyer
Company Name Payer Name Buyer Name
Item Number Number of different items on the invoice Total amount of each invoice unit for each VAT range (point A)
Price Invoice Amount Total Amount Excluding VAT
Description of goods Description of units
VlFaturePlus- Transport Total invoice, including transport
règlement value invoice amounts with reference price
Statistical Value Tax Base Total amount of each billing unit for each
Currency Exchange Rate as issued by the Bank of Albania Currency
Exchange Rate Monthly exchange rate as issued by the Bank of Albania Exchange rate
Emer Njesia – Sup1 Unit Name List of additional unit code names Unit of measure
Quantity unit Sup1 Quantity. Section 41 of the declaration. Quantity
Tax amount1 Total amount. Section 47 of the return. VAT
Model Code Nomenclature Code Item Code
Article 26
Taxation of electronic invoices for services provided by non-residents to resident taxpayers
In accordance with Article 20 of the Law, taxpayers subject to VAT, profit tax, or simplified profit tax, must fiscalize every invoice received from a foreign person not resident in the Republic of Albania in the form of an electronic invoice, through the central invoicing platform, for the supply of services.
The fiscalization procedure will be carried out on the central invoice platform.
3. Taxpayer's user account (buyer) on the central invoicing platform will display data from the foreign person's electronic invoice, which is exchanged through the central invoicing platform and is therefore compliant with the technical specifications provided in the Albanian Standards (SSH) published by the standardization authority. The taxpayer (buyer), after accepting the invoice, will add the description of services in the Albanian language, if the invoice is issued in a foreign language, directly on the platform, as well as the country code where the taxpayer's business activity is carried out, to which the non-resident invoice (services provided) relates. The taxpayer (buyer) calculates VAT and declares the invoice issued by them as self-assessment according to the law on value added tax in the Republic of Albania.
4. The taxpayer, the domestic buyer of the service, who has received an electronic invoice from abroad, will carry out the fiscalization procedure no later than the 10th of the month following the month in which the service was rendered.
5. After the fiscalization, if the verification was successful, the central tax administration's information system generates the NIVF, which will be stored in the taxpayer's (buyer's) purchase book on the central invoice platform, along with other data from the electronic invoice of the non-resident.
Article 27
Vending machine sales
Self-service equipment (vending machine) that carries out the turnover from the sale of goods or services referred to in Article 21 of the Law is considered any automated equipment where an individual does not participate as a seller during the supply of goods or services and the collection of payments. Self-service equipment for fiscalization purposes is not considered bank ATMs (automated teller machines) or e-banking (electronic banking services).
2. The self-service device (kiosk) carries out the fiscalization process by reporting sales data at the time of sale of goods or services to the tax administration information system via an internet connection.
3. Unlike what is provided for in point 1 of this article, the process of fiscalizing sales data made with coupons and similar means will not be carried out by the self-service device on which they are used, as the process of fiscalizing the invoice must be carried out at the moment of sale of coupons and similar means.
4. Each self-service device is considered an electronic billing device for cash sales, to which the provisions of Article 14 of the Law and Article 17 of this instruction shall respectively apply for the guarantee of data for electronic billing devices.
5. When data regarding the self-service device (automaton) is submitted according to point 4 of this article, the taxpayer must provide the address where the self-service device is located or its nearest address (geographic location) and also describe its exact location in a specified space.
6. On each self-service device (vending machine), the taxpayer issuing invoices must place a sticker with a printed QR code containing the following information:
a) NIPT for the taxpayer;
b) the billing electronic device code, created by the tax administration's information system after the first connection of the self-service device with the tax administration's information system for fiscalization purposes, according to Article 17 of this instruction.
7. The provisions of Article 23 of this instruction shall apply mutatis mutandis to security protocols and mechanisms, application models for sending and signing electronic messages, standard error messages, and protocols for handling irregularities for the purpose of carrying out the data fiscalization process.
8. Since there is no obligation to print a receipt for every sale via a self-service device, the message requiring the fiscalization of sales data is regulated as follows:
a) the invoice number is determined sequentially at the level of the business activity location;
b) every sale of goods or services made is recorded and accounted for as an invoice number (transaction number); and
c) The taxpayer's NIPT is considered the operator's code.
9. If the self-service device is located in an area where it is not possible to establish a permanent internet connection or there is a temporary interruption in the communication service with the tax administration information system, the taxpayer issuing invoices must ensure the retention of sales data and perform the monthly fiscalization procedure, according to Article 31 of the Law, or must perform the fiscalization procedure after the problem is resolved or the connection is re-established, within 48 hours.
Taxpayers operating in specific sectors of the economy, such as the hydrocarbon sector, and making sales through self-service machines (vending machines), must enable the printing of invoices when making sales through these devices.
11. Before starting sales from self-service equipment (vending machines), the taxpayer must provide information on the cash register deposit at the beginning of the first working day. As a simplified measure, the taxpayer is not required to perform this action on any subsequent day, but must only record transactions when withdrawing money from the cash register (self-service equipment) or when adding money to the cash register, which are not the result of sales made.
Article 28
Simplified procedure for invoice fiscalization
The simplified fiscalization procedure, in accordance with articles 22 and 27 of the Law, is available for taxpayers who issue invoices, and who meet the criteria provided for in the Decision of the Council of Ministers, for:
a) Invoices for cash transactions;
b) invoices for cashless transactions.
2. In the simplified e-invoicing procedure, taxpayers can use the central e-invoicing platform to create, issue, and validate invoices, as well as for electronic invoices, to send the electronic invoice to the buyer and vice-versa to receive the electronic invoice from the seller. The taxpayer will need to obtain a digital certificate from AKSHI, which will be used as a username and password to access the Central E-invoicing Platform. Thus, the taxpayer will only need to have an electronic device (laptop, smartphone, etc.), an internet connection, and a printer (if they wish to print the invoice) for issuing and validating the invoice.
3. During the procedure of issuing and fiscalizing invoices, according to point 2 of this article, the taxpayer who is obliged to issue invoices, performs the following actions:
a) they can access the central billing platform using the electronic certificate issued by AKSHI;
b) upload the invoice data directly to the central invoice platform in the corresponding invoice template;
c) after verifying the accuracy of the submitted or written data, the tax administration information system generates the NIVF and NSLF, which it presents to the taxpayer immediately after verification;
c) after receiving the VAT identification number, the taxpayer issuing invoices:
For cash transactions, prints the invoice and gives it to the consumer or sends it electronically;
ii. for cashless transactions, when the client is an individual or a person not liable for tax who issues invoices according to the Law, prints the invoice and gives it to the consumer or sends it electronically with their consent;
iii. For cashless transactions, when the customer is another taxpayer issuing invoices based on the Law, they issue the invoice in the form of an electronic invoice and send it to the consumer through the central invoicing platform.
4. The simplified tax procedure means that the taxpayer who is obligated to issue invoices according to the Law:
a) is not obligated to install and register special electronic devices for cash transactions;
b) is not obligated to install or use any specific software solution for the fiscalization procedure;
c) is not obliged to provide information about the software owner.
5. Taxpayers issuing invoices under point 1 of this article may also submit to the central invoicing platform information on cash deposits at the beginning of the first working day. As a simplified measure, the taxpayer is not obliged to perform this action on any subsequent day, but only needs to record transactions when withdrawing cash from or adding cash to the register, which are not the result of sales made.
Article 29
Cash Payment Invoice
1. The invoice must be printed on paper (any paper format) for transactions with individual consumers and for cash transactions with other taxpayers. However, if electronic services are provided or the supply of goods/services is contracted and charged through a mobile application, online store, or the like, the invoice does not need to be printed on paper, but can be sent to the buyer or invoice recipient via email or as an electronic invoice.
For example, in the case of a distance sale, if the customer (an individual) pays with their credit card, then this is considered a cash payment, according to Article 3 of the Law, but the invoice does not need to be printed on paper; instead, the seller can send it to the buyer via email in PDF format.
2. In case of payment without cash on delivery, for transactions with individual consumers, the invoice can be printed on paper or sent by email or as an electronic invoice. The buyer must give his consent to receive the invoice by email or in electronic form.
Article 30
Electronic invoice for cashless payments in transactions with public authorities
The obligation to issue and receive an electronic invoice arises in two cases, according to Articles 24 and 25 of the Law:
a) for the supply of goods or services in transactions where the seller and the buyer are taxpayers (VAT subjects, or profit tax, or simplified profit tax for small businesses, according to the applicable tax legislation), but only if the invoice is paid or will be paid without cash upfront;
b) in transactions with any public body, where the public body is the recipient, i.e., the buyer of goods or services.
An electronic invoice must contain the elements as defined in Article 10 of the Law. In addition to these, an electronic invoice must be issued and also received in an electronic format. The format must comply with Albanian Standards (SSH) as published by the responsible standardization institution. This means that not all invoices created in electronic format can be considered “electronic invoices” that meet the requirements of Articles 24 and 25 of the Law. Invoices created in electronic format, for example, through accounting software or word processing software, which are sent and received on paper, are not electronic invoices.
Article 31
Central Billing Platform
The central invoicing platform is created, developed, maintained, and technically administered by AKSHI, while the data exchanged through this platform is administered by the tax administration.
The taxpayer issuing the invoice can access the central invoicing platform using the digital certificate issued by AKSHI, which they will also use to issue invoices and carry out the fiscalization procedure.
The central billing platform has two main purposes:
a) implementation of the fiscalization process;
b) electronic invoice exchange.
4. For the implementation of the fiscalization process, the taxpayer issuing invoices on the central invoicing platform can perform:
a) the submission of the requested information in accordance with the Law (on the place of exercise of
business activities, on operators, on software solution maintainers, etc.);
b) Review of all fiscalized invoices in which he appears as a buyer or seller in the purchase book or sales book;
c) the sending of information on all electronic invoice payments received;
c) if they meet the criteria established in the Council of Ministers Decision, on the central invoicing platform they can also create an invoice, perform the fiscalization procedure, issue an invoice or an electronic invoice, and send and receive an electronic invoice;
d) to view and add additional data to sales and purchase ledgers.
Article 32
Interruption of the electronic connection (internet)
1. The taxpayer issuing invoices, who fails to restore the functioning of the fiscal service, i.e., the connection with the tax administration information system, for the purpose of carrying out the fiscalization procedure, in accordance with Article 29 of the Law, within 48 hours, must inform the tax administration through the form “Reporting the impossibility of establishing a connection with the fiscal service,” which is in Annex 4, an integral part of this instruction.
2. The form, in accordance with point 1 of this article, shall be submitted electronically through the central invoicing platform or in person at the competent local tax administration office where the taxpayer is registered, if the taxpayer cannot access the central invoicing platform.
3. Along with the form stipulated in point 1 of this article, the taxpayer issuing invoices must also submit attached documentation that can prove the reason for the inability to re-establish the internet connection (for example, confirmation from the internet provider, etc.), in the same way as they act with the form according to point 2 of this article.
4. If it is impossible to establish the connection within 48 hours, after informing the tax administration according to point 1 of this article, the taxpayer may continue to issue invoices without a VAT identification number and without tax registration, until the connection is restored. After resuming operation, he tax registers all invoices issued in offline mode. If the internet connection interruption occurred during the month and the reconnection was not made by the 10th day of the following month, then the taxpayer must submit all untaxed invoices to the central tax administration, according to Article 31 of the Law and Article 34 of this instruction.
Article 33
Discontinuation of the fiscal device's operation for taximeter implementation
In case of complete malfunction of fiscal devices used for issuing invoices, taxpayers who are obliged to issue invoices in accordance with Article 4 of the Law, are obliged to issue invoices from the special invoice block, in accordance with Article 30 of the Law.
2. 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. These documents must necessarily be in the form approved by the Director General of Taxes. The criteria to be met by persons authorized to print these documents, the printing conditions, and security standards are as determined in the Decision of the Council of Ministers “On the printing of tax documentation.”.
The taxpayer who issues invoices is provided with a special invoice book at the Regional Tax Directorate where they are registered.
The special invoice block must have a printed serial number for each invoice it contains.
Invoices issued from the special invoice block are issued in two copies, of which the original, signed by the issuer, will be given to the client, while one copy is kept by the supplier of the product or service.
All invoices issued from the special invoice book must be fiscalized within 5 days. This means that the taxpayer issuing invoices must enter all invoice data from the special invoice book into the electronic invoicing device (for cash payments) that he uses for issuing invoices and carry out the fiscalization procedure, according to article 14 of the Law.
7. During the suspension of fiscal devices“ operation, the taxpayer issues invoices from a special invoice block without NVIF and NSLF, and the words ”Suspension of fiscal device operation" are written on the invoice.
Invoices from the special invoice block will continue the sequential numbering that begins after the last invoice number issued by the electronic device. When the taxpayer resumes issuing invoices from the electronic device, they must continue the sequential numbering that begins after the last invoice number issued from the special invoice block during the device's malfunction period.
The initial cash deposit at the beginning of each working day, as well as changes in the cash deposit, are recorded in a separate bill log.
Article 34
Implementation of the fiscalization procedure in areas where it is not possible to establish a data exchange connection
Taxpayers must notify the tax administration of their inability to establish an electronic connection (internet) for data exchange with the tax administration's information system in countries where they conduct business activities located in areas without a permanent internet connection.
2. For notification, the taxpayer issuing invoices must check the availability of internet access service for the locations where the business activity is carried out or part of the activity is carried out, from:
a) operators providing internet access service via a fixed electronic communications network (fixed access);
b) operators providing internet access service via a wired electronic communication network (cable access);
c) operators that provide internet access service through a mobile electronic communication network (mobile access).
3. The notification referred to in point 1 of this article shall be made through the central invoicing platform or, if the taxpayer issuing invoices cannot access that platform, through the “Business Activity Location Information” form, as per Article 17 of this instruction, which shall be submitted to the responsible local tax administration office, according to the location of the business activity or his residence, at least 24 hours before commencing the issuance of invoices at that business activity location.
4. In addition to the notification mentioned in points 1 and 3 of this article, the taxpayer issuing invoices must submit the following documents:
A negative response to his request for the provision of a fixed-line internet service from at least two internet service providers, one of which will be the largest, the universal service provider;
b) a negative response to the taxpayer's request for the provision of an internet access cable service by at least one operator operating in the area where the business activity is located;
c) a report containing the exact day and time of disconnection from the Internet via the device to access the cellular data of each of the operators providing Internet access service, which the applicant had received for free for two days.
5. If from the documentation provided and based on information on the availability of internet access services available to AKEP, the central tax administration can conclude that the taxpayer issuing invoices cannot establish a functional link for the exchange of information with the tax administration, it issues an electronic confirmation, which will be stored on the central invoice platform in the taxpayer's personal account and, upon their request, sent to their email address, stated in the application form, in accordance with paragraph 3 of this article (in the designated field), with a validity period of one year. After one year, the taxpayer must repeat the notification procedure as described in this article.
6. If the taxpayer issuing invoices has not submitted the evidence mentioned in point 4 of this article, no confirmation will be issued to them.
7. In implementation of Article 31 of the Law, taxpayers who conduct business in an area where it is not possible to establish a permanent internet connection to exchange data with the tax administration's information system, issue invoices and use the tax service in offline mode. The right to operate offline may only be exercised by taxpayers who have a confirmation pursuant to paragraph 5 of this article.
Taxpayers issuing invoices according to point 7 of this article, must submit data on the electronic invoicing device, for the places where business activity is carried out, for the operators, and for the software solution maintainer, by using the central invoicing platform or, if they cannot access the platform, through the defined forms that are an integral part of this instruction, which will be submitted to the responsible local tax administration office, according to the place of business activity or their residence, at least 24 hours before starting to issue invoices at that place of business activity.
9. During the period of working in offline mode, the taxpayer issues invoices containing all data, according to Article 9 or 11 of the Law, including the QR code and NSLF, except for NIVF. The invoice also contains the words “Works in offline mode”.
10. The registration of the cash deposit referred to in Article 40 of this Directive shall be registered in the taxpayer's electronic system and signed with an electronic signature by working day.
By the end of the month, and no later than the 10th of the following month, the taxpayer issuing invoices in accordance with point 7 of this article shall submit to the tax administration all invoices issued in the previous month, in one of the following ways:
a) the receipt of electronic device used for issuing invoices and on which invoices are stored in an area with internet connection, where he can also connect that device to the internet and continue the fiscalization procedure;
b) downloading all data to rewritable portable media (e.g., USB, or rewritable CD, or external memory device) and:
i. self-billed on the central billing platform; or
ii. by submitting it to the nearest tax administration office.
12. Upon submission of data pursuant to point 11 of this article, the tax administration information system shall perform verification of all received invoice data and generate a unique invoice verification number (NIVF) for each invoice, as confirmation of receipt of the submitted invoices.
13. A list of invoice numbers and their assigned NIFs will be provided to the taxpayer who issues electronic invoices, in the same manner by which they submitted the invoices to the tax administration (directly to the device, or through the central invoice platform, or stored on removable media).
14. Upon receipt of the NIVF for each invoice, the taxpayer issuing the invoices is required to upload the NIVF to the electronic device or electronic system used for issuing and storing invoices within five days and attach it to any previously issued invoices.
If during the verification of submitted invoices, irregularities mentioned in Article 23 of this Instruction are found, for which NIVF cannot be determined, the taxpayer will receive an error description and will correct the irregularities, then repeat the procedure.
Article 35
Fiscalization of corrective/amending invoices
1. If the taxpayer-seller needs to cancel the issued invoice because the buyer has not accepted it (for example, if there are some errors in the invoice, or if the buyer has returned some items to the seller, or if the transaction does not take place, etc.), the taxpayer who issued the invoice cannot delete it from the sales register or cancel it in his electronic system, but must issue a corrective invoice, a debit note or a credit note, in accordance with the legal and regulatory acts on VAT, and have it fiscally registered.
The corrective invoice must contain reference data for the invoice being corrected, i.e., the NSLF of the invoice being corrected and all other invoice elements according to the Law. The corrective invoice must be fiscalized after verification by the central tax administration's information system. If the verification is successful, it will receive a NIVF (unique invoice identification number).
Example 1.
Company A sells to Company B 500 units of milk bottles (1 liter packaging) at a price of 300.00 ALL per bottle excluding VAT, on 05.08.2020 (this is the original invoice), for a total of 180,000.00 ALL (150,000.00 ALL + 30,000.00 ALL VAT).
Company A issues the following invoice:
Tax bill
Company A
Morat Toptani Street 1, Tirana, Albania J43675678H
Date and Time: 05/08/2020, 20:01:24 Invoice Number: 156-2020-ab5352mjul Operator: lke1346787
Place of business activity: abc123456i Payment method: cash card
Buyers: Company B, P2222222T, Tirana, Urani Pano Street 1, Albania
Mallrave/shërbimeve Njësia Sasia Çmimi Vlera pa TVSH TVSH Goods/Services Unit Quantity Price Value without VAT VAT
Milk 1 piece 500 300.00 150,000.00 1
Item Code Rate Value VAT Value
VAT 1 20% 150,000.00 30,000.00
VAT 2 10% 0 0
150,000.00 lek
TVSH: 30,000.00 lek
Total value with VAT: 180,000.00 lek
NSLF: 877246-3432-523235-
NIVF: 121-4545-55435-23435235-
Company B paid the invoice on 08.07.2020, but on 09.10.2020, it returns 100 milk bottles to Company A due to packaging problems. Therefore, Company B requests a refund of 30,000.00 ALL + 6,000.00 ALL VAT. On 09.11.2020, Company A issues a credit note for the invoice, fiscalizes it, and sends it to the buyer.
Tax Invoice (Corrective Invoice - Credit Note)
Company A
Morat Toptani Street 1, Tirana, Albania J43675678H
Date and Time: 11/09/2020, 3:01:24 PM Invoice Number: 170-2020-ab5352mjul Operator: lke1346787
Place of business: abc123456i Payment method: banknote
Buyers: Company B, P2222222T, Tirana, Urani Pano Street 1, Albania
Mallrave/shërbimeve Njësia Sasia Çmimi Vlera pa TVSH TVSH Goods/Services Unit Quantity Price Value without VAT VAT
milk 1 piece -100 300 -30,000.00 1
Item Code Rate Value VAT Value
VAT 1 20% – 30,000.00 -6,000.00
VAT 2 10% 0 0
-30,000.00 lek
TVSH: -6,000.00 lek
Total value including VAT: -36,000.00 ALL
NSLF: 123566-3432-523235-23525
NIVF: 511-222-55435-23435235-2
Regarding the clarification of invoice NSLF: 877246-3432-523235-23525
This corrective invoice must be recorded in the buyer's purchase ledger and the seller's sales ledger in the month it was issued, in this case, September 2020.
This corrective invoice should be issued as a simple invoice. Example 2.
Company B from example number 1 did not pay the invoice and canceled the order, so the goods were returned to the seller, Company A, on 08.10.2020.
Company A in this case issues a corrective invoice, fiscalizes it, and sends it to the buyer. This corrective invoice is registered in the buyer's purchase book and in the seller's sales book in the month it was issued, i.e., in August 2020.
Tax Invoice (Corrective Invoice - Credit Note)
Company A
Morat Toptani Street 1, Tirana, Albania J43675678H
Date and time: 11/08/2020, 15:01:24 Invoice Number: 160-2020- ab5352mjul Operator: lke1346787
Place of business: abc123456i Payment method: banknote
Buyers: Company B, P2222222T, Tirana, Urani Pano Street 1, Albania
Mallrave/shërbimeve Njësia Sasia Çmimi Vlera pa TVSH TVSH Goods/Services Unit Quantity Price Value without VAT VAT
milk 1 piece -500 300.00 – 150,000.00 1
Item Code Rate Value VAT Value
VAT 1 20% – 150,000.00 – 30,000.00
VAT 2 10% 0 0
150,000.00 lek
TVSH: -30,000.00 ALL
Total value with VAT: -180,000.00 lek
NSLF: 123566-3432-523235-11111
NIVF: 511-222-12121-23435235-222
Regarding the clarification of invoice NSLF: 877246-3432-523235-23525
This invoice must be issued with the designation "corrective invoice" and linked to the invoice.
Goods supply failure.
Example 3.
Company A, from the first example, two months later discovers that in the first invoice, the quantity of 100 bottles of milk should have been invoiced at a price of 350 lekë per bottle due to different packaging (1.5 liters instead of 1 liter). On October 11, 2020, Company A issues a corrective invoice, registers it, and sends it to the buyer. This corrective invoice is recorded in the buyer's purchase book and in the seller's sales book in the month it was issued, i.e., October 2020.
23456i
o 1,
value: 5,000.00 lek
TVSH: 1,000.00 lek
Total value with VAT: 6,000.00 lek
NSLF: 333555-3432-123123-12121
NIVF: 333-111-12121-23435235-222
Regarding the clarification of invoice NSLF: 877246-3432-523235-23525
This invoice must be issued with the designation "corrective invoice" and be linked to the initial invoice for the supply of goods.
3. In cases where the first invoice has not been fiscalized due to an internet connection interruption or any error encountered during the fiscalization procedure, and a corrective invoice is subsequently issued, the taxpayer first fiscalizes the initial invoice and then the corrective invoice that corrects the initial invoice.
If the invoice being corrected is not found in the database, the central tax administration information system generates an error message that will be stored in the taxpayer's user account on the central invoicing platform, and the taxpayer must correct the encountered irregularities.
5. In cases where an electronic invoice has been issued and accepted by the buyer, it shall be recorded in the seller's sales book and the buyer's purchase book. After the buyer verifies the electronically received invoice through the central invoicing platform, they may accept it for payment or reject it if they wish to withdraw from the transaction. This status of the electronic invoice shall be recorded on the central invoicing platform. If the electronic invoice is rejected by the buyer, it shall be removed from their purchase book, and the seller, i.e., the taxpayer who issued the invoice, shall be required to issue a corrective invoice and fiscalize it. In this circumstance, the corrective invoice shall not be recorded in the buyer's purchase book but shall be recorded in the seller's sales book. If the electronic invoice is accepted for payment by the buyer and the taxpayer who issued the invoice issues a corrective invoice later, it must be fiscalized and exchanged with the buyer through the central invoicing platform, and when the buyer accepts it, it shall be recorded in their purchase book. Any electronic invoice issued (including corrective invoices) by the invoicing taxpayer shall be recorded in their sales book after the fiscalization procedure is completed.
6. In cases where the taxpayer must change other elements of the invoice that are incorrect (e.g., buyer's tax identification number, payment method, etc.), they must first issue a corrective invoice with all the same elements as the original invoice (except for the issue date and invoice number, which are elements related to the corrective invoice itself) and the entire amount must be negative. After this, a new invoice must be issued with correct data, referencing the NSLF of the first issued invoice (the original, not the corrective invoice).
Article 36
Bill notification
In accordance with Article 33 of the Law, a taxpayer who issues invoices is obliged to post a notice at each of their business locations (fixed establishments), on each electronic invoicing device, or at any other conspicuous place for
consumer, regarding the taxpayer's obligation to issue an invoice and the buyer's obligation to receive and keep it.
2. The form and content of the notification according to point 1 of this article are attached in Annex 5 of this Directive.
3. If the buyer is a taxpayer, individual or legal entity, for tax purposes, under the law on value added tax in the Republic of Albania, they are obliged to obtain the invoice and keep it for 5 full calendar years, starting from the year after the invoice was issued.
4. Upon request by an authorized tax administration employee, the buyer must present the issued invoice.
Every buyer, whether an individual, legal entity, or person, has the right not to complete a transaction for the value of goods or services offered if the seller does not issue an invoice in accordance with the Law.
Article 37
Buyer's obligations
In accordance with Article 34 of the Law, the buyer or recipient of an invoice issued for cash payment must keep the issued invoice up to 30 meters after leaving the seller's place of business, i.e., the taxpayer who issued the invoice. Upon request of an authorized employee of the tax administration, the buyer must present the issued invoice.
Article 38
Invoice verification
Buyers and all recipients of invoices, for all invoices received from taxpayers who are obliged to issue invoices, pursuant to Article 4 of the Law, can verify whether the invoice is reported to the tax administration, within 60 days from the date of invoice issuance.
Verification will be done by scanning the QR code on the invoice from a smartphone, from any other electronic device with a scanning function, or through the central invoice platform by searching for the invoice in the purchase book (if the buyer is a taxpayer who issues invoices and their TIN is written on the invoice). There are many applications in the app store available for free download. The QR code encodes a link to the central tax administration application with the details of the scanned invoice. Here is an example of a QR code that can be found on the invoice:
3. The buyer and all recipients of the invoice can also verify the invoice by making a request through the online service or mobile application available on the tax administration's website and manually entering the required data (e.g., invoice's NIVF or NSLF). In situations where the invoice is issued manually from a separate invoice block or when some of the mentioned data is missing, the buyer can verify the invoice at the nearest tax administration office.
4. After scanning the QR code or entering the data according to point 3 of this article, the buyer will be directed to the validation page of the tax administration information system to confirm the fiscalization status of the invoice. When the application opens, the page with invoice details opens. In the upper right corner, there is an icon that shows the status of the invoice.
There are three possible cases:
The invoice has been successfully registered.
The invoice has a problem that needs to be reported.
The user receives a warning message at the bottom of the screen
If the invoice is registered successfully, the invoice information will be displayed.
The invoice contains key information such as the total invoice amount, VAT amount, name and address of the invoice issuer, date and time of invoice issuance, etc. Below is an image of the template with the described information:
In the middle of the screen, there is extended information regarding the invoice such as unique invoice codes (NIVF and NSLF), the country code of the business activity where the invoice was issued, the electronic money device code used for issuing the invoice, the unique taxpayer identification number of the issuer of the invoice, the invoice number, etc.
After this section comes the list of items. For each item, there is a name, as well as the unit price, the quantity of items purchased, their total price, and the corresponding VAT. Also displayed is a summary that includes the number of items, the VAT rate, the taxable base of grouped items, the total price including VAT for all products with the same VAT rate, and the total VAT for all items with the same VAT rate.
The consumer can compare this stored content with the data on the invoice received and report any issues with that invoice directly to the tax administration directorate through the application.
6. If the invoice has not been registered, a message will appear instructing the buyer to return later, as the law allows invoices to be registered after issuance in some cases, but this must be done within the timeframe prescribed by law, for example:
a) The invoice is not found in the database, but the invoice was issued within the last 5 days. In this situation, the taxpayer who issued the invoice has a deadline of 48 hours or 5 days to fiscalize the invoice (depending on whether it is a situation foreseen in articles 29 or 30 of the Law). For this reason, even though the invoice is not found in the database, this outcome does not yet mean that there is a violation of the Law. The consumer can repeat the verification procedure 5 days after the invoice issuance date.
b) The invoice is subject to the monthly fiscalization procedure. This means that the invoice is not found in the tax administration's database, but since the taxpayer who issued the invoice has confirmation from the central tax administration that.
Sometimes an issued invoice needs to be corrected, so the taxpayer who has
issuing an invoice will issue a corrective invoice and will fiscalize it by referring to the original invoice. In this situation, the buyer will receive one of the following warning messages:
a) “Successful fiscalization, but this is a correction for another invoice” - In this situation, the buyer has verified the corrective invoice, and the reference to the original invoice being corrected (its NSLF) will appear. If the buyer has not received the original invoice to which this corrective invoice is linked, then it is highly likely that the taxpayer is in violation, and the buyer should report it to the tax administration directly via the request.
b) “Successful fiscalization, but there are correction invoices for this invoice” – In this situation, the buyer has verified the original invoice and the reference for its correction invoices has been issued and fiscalized once the invoice (their NSLF) appears. If the buyer has not received these correction invoices, it is very likely that the taxpayer is in violation, and the buyer should report them to the tax administration directly through the application.
In case there is a problem with the invoice, which must be reported based on the invoice verified by the buyer and the data stored in the tax administration's information system, the following situations may arise:
a) Invoice not registered in the database – In this case, the invoice is not found in the tax administration database, meaning it has not been fiscalized, and more than 48 hours/5 days have passed since the invoice was issued and the taxpayer does not have an approval for monthly fiscalization or the deadline for subsequent fiscalization has not passed. In this case, the central tax administration will conduct a detailed analysis. Consequently, the taxpayer is very likely to have violated the Law.
b) NIVF is invalid - In this case, the NIVF has not been formed correctly and an error will appear. This error indicates that the invoice is suspicious and requires further analysis by the tax administration.
c) The released invoice details do not match the invoice details in the request – Possible reasons include a case where the invoice registration software contains several errors and registers the invoice with incorrect data. Another reason could be when the issued invoice has an incorrect VAT, WHT, and QR code which are placed on the invoice solely to make it appear correct, but in reality, they can be linked to other existing invoices. Thus, it is highly likely that the taxpayer is in violation.
c) The corrective invoice was not registered within the required timeframe – In this situation, the taxpayer verified the corrective invoice, but this invoice was not in the database, and more than 48 hours/5 days have passed since the issuance of the corrective invoice, and the taxpayer does not have approval for monthly fiscalization, or the deadline for subsequent fiscalization has passed. In this case as well, it is highly likely that the taxpayer is in violation.
d) Invoice parameters do not match invoice details in the application – In this situation, the QR code on issued invoices links to an online application with query parameters that describe some of the important details for invoice identification. These parameters include the NSLF, total amount, invoice issue date, and other information. It is possible that the QR code contains invalid information, for example, there is an invoice registered in the NSLF from the QR code, but other parameters, such as the total invoice amount, do not match the information in the invoice registered with the same NSLF. This type of error is expected to originate from errors in the billing device software that issued the problematic invoice.
9. If a verification request is officially incorrect, the buyer or invoice recipient receives a message stating that the accuracy of the provided information needs to be checked.
10. If the invoice verification system is temporarily unavailable, the buyer or invoice recipient will receive a message stating that the invoice verification system is unavailable.
11. If the invoice presented for verification is not registered in the tax administration's database, or if the buyer encounters any other problems with the invoice, the buyer or invoice recipient can report it directly in the invoice verification application. This will open a form where the buyer can write additional information about the invoice. In the report, the buyer may include their contact information so that they can be contacted by the tax administration if there is additional information that would assist the report. The buyer may also choose to remain anonymous and not submit personal information. Additional notes can be made by the buyer to provide further details about the invoice or issuer. The issue report will be forwarded to the tax administration, which will process the reports and take the necessary actions. The buyer can also submit invoices with various problems or irregularities to the nearest tax administration office for inspection purposes.
Verse 39
Receipt keeping
1. Pursuant to Article 36 of the Law, the taxpayer issuing invoices must take measures to keep the issued invoices, in accordance with the provisions of the Law.
2. Pursuant to point 3 of Article 6 of the Law, the taxpayer must keep invoices in their original form, whether in paper or electronic format, in which they were sent or made available. The taxpayer issuing invoices may, regardless of their original form, also store invoices in electronic form, if these storage methods make it impossible to alter, delete data, or reproduce the invoices in their original form. If invoices are stored electronically, the information must also be stored electronically, ensuring the authenticity of origin and integrity of data.
3. According to Article 28 of the Law, from the time of issuance until the end of the invoice retention period, the taxpayer must ensure the authenticity of origin, integrity of content, and readability of issued invoices, whether in paper or electronic form.
4. The originality and integrity of electronic invoice data must be ensured through electronic signatures.
5. The authenticity of the source of the invoice is the assurance of the identification of the supplier or issuer of.
6. The integrity of the invoice content means that the requirements for invoice content, as required by law, have not been altered since the invoice was issued. The integrity of an invoice's content is an obligation for both taxpayers, the supplier and the recipient of the supply. Both can fulfill this obligation through an electronic signature to ensure the content is unaltered. By ensuring that the invoice content, as required by law, has not been altered, the format in which this content is kept can be converted into other formats (a change of format can be a change in file type, for example, XML, to another electronic format, without altering the content). This allows the customer or a service provider acting on their behalf, to convert or present electronic data in a different manner in order to match their information system or as a consequence of technological changes over time. However, in converting from one format to another, the change must be recorded in the audit trail.
7. Readability of an invoice means that the invoice is human-readable. The invoice must be presented in a format where all invoice elements are clearly legible, on paper or screen, without the need for undue examination or interpretation; for example, XML messages and other structured messages in their original format are not considered human-readable (after a conversion process, they may be considered human-readable). For invoices stored in electronic form, this condition will be considered met if the invoice can be immediately presented, upon request within a reasonable time, including after a conversion process, in a human-readable format on screen or via printing. It must be possible to verify that the information between the original electronic file and the presented readable document has not changed. To ensure readability, an electronically stored invoice must be stored in a suitable and reliable manner throughout the retention period.
Article 40
Procedures for registering cash payments in the cash register
By using the fiscalization system service, taxpayers who issue invoices and use electronic invoicing devices for cash payments (banknotes and coins only) report the initial cash balance at the beginning of each working day for each individual device used, before the first invoice is issued. The initial amount is the starting amount of cash in the cash register (banknotes and coins) that the taxpayer may have at the beginning of the working day or shift of each operator.
2. In accordance with the method mentioned in point 1 of this article, the taxpayer is obliged to report any change in the amount of cash deposit registered during the same day at the moment the change occurs:
You have decided to add extra cash to the cash register (electronic billing device). In this situation, the taxpayer records the new amount of cash on hand added to the initial deposit as “cash addition,” and this amount will be added to the initial amount of cash on hand recorded and/or;
b) withdrawing a certain amount of money from the cash register during the workday. In this situation, the taxpayer must only record the amount of “cash withdrawal,” which is.
3. Based on the reported data mentioned in points 1 and 2 of this article, the amount of money for an individual verified electronic device must at all times correspond to the amount of money collected based on the invoice(s) issued for cash payments (banknotes and coins) during that day and the amount of the reported cash deposit.
4. If the business activity's operating hours are reported as 0-24, cash deposits must be reported at the beginning of each day and whenever cash deposits change during the day.
5. If the taxpayer carries out business activity in an area where establishing a permanent internet connection is not possible or where there is a temporary interruption in the communication service with the Tax Administration's information system, the invoicing taxpayer must ensure the preservation of data for cash deposits, save the cash deposit information at the beginning of each day, and electronically sign it with an electronic certificate. Subsequently, within 48 hours, this information must be sent to the Tax Administration's information system, using the fiscalization service after the problem is resolved or the internet connection is restored.
The money deposit can also be zero (0), but it must be registered.
7. In the event that a country where business activity is conducted accepts as a method of payment
only credit or debit cards (for example, in cases of an online store or distance selling activity) or any other payment method other than banknotes and coins, the taxpayer is not obliged to register the cash deposit daily.
8. The message data group for reporting the status and changes in the cash deposit, as well as the response messages, are specified in the technical specifications published on the website of the central tax administration.
Article 41
Entry into force
This directive enters into force immediately upon publication in the Official Gazette and begins to be implemented in accordance with the deadlines set forth in the Law.
This instruction enters into force immediately after its publication in the Official Gazette and begins to be applied in accordance with the deadlines specified in the law.
This instruction enters into force immediately after publication in the Official Gazette. This instruction enters into force immediately after publication in the Official Gazette.
Minister of Finance and Economy
Anila Denaj
Published in the Official Gazette No. 64, dated 04/10/2020
Changed:
– Changed by Instruction No. 5, dated 02.23.2021, published in the Official Gazette No.
30, dated 02/26/2021
– Amended by Instruction No. 22, dated 15.10.2021, published in the Official Gazette No.
163, dated 10.19.2021
Changed by Instruction No. 27 dated 31.12.2021, published in the Official Gazette No. 3 dated 10.01.2022
Attachment 1: “Information on Business Activity Location” Form”
“INFORMATION ON THE PLACE OF BUSINESS ACTIVITY”
A) Initial registration B) Change, country code of place of business activity: Date
delivery
No. Description Data
Taxpayer Identification Number (TIN) issuing the invoice**:
Taxpayer's name issuing invoice*:
3 Business name of the place of business activity, if any:
Taxpayer Status* (From the National Business Center/Tax Administration):
Active
b) Request for
registration
Registered
Bankrupt
Passive
5 Business activity location address*: a) Street: b) City c) District d) DRT e) Tax Agency ë) Postal code:
6. Type of business activity location*: a) premises b) land c) vehicle
7 Type of activity conducted at the business activity location*: a) fixed b) mobile d) field work f) warehouse
c) online trading g) market h) services e) self-service (vending machines)
8 Vehicle registration number (for vehicles registered for business purposes):
9 Types of economic activities carried out at the place of business activity*: main activity:
secondary activity
10 Start date of economic activity in the country of practice
business activities
11 Date of cessation of economic activity at the place of business, including the date of temporary cessation, if any*:
12 Area of the business activity premises, for fixed locations (in m²):
internal: external:
13 Payment method accepted for the supply of goods or services at that place of business operation*: a) cash b) non-cash
14 Business activity location*: a) Open c) Closed
15 Is an internet connection available*:
a) yes b) Yes, the name and TIN of the internet provider:
16 Specify whether the business activity premises are owned or leased: a) owned b) leased, Landlord's Name and ID/Tax ID:
17 NIPT-i i
software solution maintainers:
18 Daily working hours, working days per week, as well as work on official holidays*: E
Hello. E
March E
Mon. Tue. Wed.
Pre. E Sht. E
Death. Festival
19
Invoice Numbering Rule*: a) at the country level b) at the company level c) according to
practice of electronic equipment method of activity billing payment business
20. Notes:
* fields are required for submission Taxpayer's signature:
of the first form; the others are mandatory if applicable.
In the event of changes, the NIPT field is mandatory, along with any other fields that have changed.
Appendix 2: "Information for Operators" Form“
“Information for Operators”
A) First delivery B) Changes Delivery date:
I. Information on the taxpayer issuing invoices
Name of the taxpayer:
The taxpayer's NIPT:
II. Data on operators
No. Description Data
1. Name and Surname/Name:
Personal identification number/NIPT:
Valid from (start date of invoice issuance):
Expires on (end date, if known):
2. First name and last name/First name:
Personal identification number/NIPT:
Valid from (start date of invoice issuance):
Expires on (end date, if known):
3. Full name/First name:
Personal identification number/NIPT:
Valid from (start date of invoice issuance):
Expires on (end date, if known):
4. Name and Surname/Name:
Personal identification number/NIPT:
Valid from (start date of invoice issuance):
Expires on (end date, if known):
Taxpayer's signature:
Appendix 3: “Billing Electronic Device Registration” Form”
“Electronic Billing Device Registration”
A) First delivery B) Changes Delivery date:
I. Information on the taxpayer issuing invoices
Name of the taxpayer:
The taxpayer's NIPT:
II. Billing Electronic Device Data (KASË)
No. Description Data
1. Business activity code:
Cash register serial number:
Software Solution Code:
Software maintainer's code:
House Code:
Valid from:
Valid until (if known):
2. Country of exercise of business activity:
Cash register serial number:
Software Solution Code:
Software maintainer's code:
House Code:
Valid from:
Valid until (if known):
3. Country of business activity:
Cash register serial number:
Software Solution Code:
Software maintainer's code:
House Code:
Valid from:
Valid until (if known):
Only when changes are submitted
Taxpayer's signature:
Appendix 4: Form "Report on the Inability to Establish Contact with the Tax Service"“
“REPORT ON THE INABILITY TO ESTABLISH A CONNECTION WITH THE TAX SERVICE”
Delivery Date:
I. Information on the taxpayer issuing invoices
Name of the taxpayer:
The taxpayer's NIPT:
II. Data on the location(s) of business operations without internet connection
No. Description Data
1. Business activity code:
Date and time of interruption start:
Reasons for being unable to reconnect to the fiscal service:
Attached documentation:
2. Country of exercise of business activity:
Date and time of interruption start:
Reasons for being unable to reconnect to the fiscal service:
Attached documentation:
Taxpayer's signature:
Attachment 5: Notice of Obligation to Receive and Retain Invoices
According to the Law on the invoice and the traffic monitoring system:
the seller is obliged to issue an invoice for every supply of goods or services;
The buyer is obligated to receive and keep the invoice 30 meters after leaving the business activity location.
Failure to accept the invoice is punishable!
Scan the invoice's QR code to verify if it has been registered with the Tax Administration!
Source: Official Publications Center.