In clarification of the recent legal changes regarding the obligation of taxpayers to open bank accounts, we note that the entities covered are:
- individual taxpayers who are traders, registered for value-added tax;
- legal entities that are taxpayers, regardless of the turnover they generate;
- Nonprofit organizations registered with the tax authority.
Given the ambiguities that have arisen regarding the above legal obligation, we provide a more detailed explanation as follows:
1. Natural person traders who are simultaneously registered for Value Added Tax – from the minimum registration threshold for VAT of 2,000,000 lekë per year, or if they exercise a liberal profession – are subject to the above provision;
2. Legal entities and nonprofit organizations, regardless of their turnover, are also required to have a bank account and to declare it to the Tax Administration.
The aforementioned taxpayers, registered with the National Business Center/Tax Administration, are required to open a bank account no later than 90 days after this Law takes effect and to declare it to the Tax Administration. This deadline is October 26.
The Tax Administration announces that as of October 15, you will be able to submit this information, by completing it.ëSubmitted to your electronic filing account on E-filing.
New taxpayers are required to open the business/organization's bank account no later than 20 calendar days from the day after registration with the Business Registration Center/Tax Administration and to report it in the same manner to the Tax Administration.
We emphasize that only currently registered sole traders who are not registered for value-added tax are exempt from the obligation to open and declare their bank account information to the Tax Administration.
If these entities register for Value Added Tax at a later time, they are required to open and declare the bank account with the Tax Administration.
In the event of non-compliance with the aforementioned tax obligation, Law No. 31/2019 “On Certain Amendments to Law No. 9920, dated May 19, 2008, “On Tax Procedures in the Republic of Albania,”" as amended, provides for penalties for taxpayers.
The Tax Administration urges taxpayers subject to these legal provisions to voluntarily fulfill this legal obligation within the deadlines.
Source: General Directorate of Taxes.