- As of January 30, 2026, cash payments between two businesses do not exceed 100,000 lek.
- When the buyer is an individual, the limit is 500,000 lek.
- A cross-border payment is subject to a 101 TP3T fee on the transaction value.
- The POS terminal becomes mandatory for everyone by December 31, 2026.
- The concealment of an obligation is treated as evasion and is punishable by a 100% fine on the difference.
Cash payments are not prohibited; they are limited. The distinction matters because the limit applies not to the sale price but to the payment method.
As of January 30, 2026, the thresholds have been lowered. Between two businesses the maximum is 100,000 lek, while when the buyer is an individual the maximum is 500,000 lek.
Read also: Cash limit and cash payments 2026
Borders and fines
| Case | Rule in effect |
|---|---|
| Payment between two businesses | 100,000 lek |
| Payment from individual to business | 500,000 lek |
| Fine for passing | 10% of the transaction value |
| POS, the first sectors | Deadline: May 30, 2026 |
| POS, all the others | Deadline: December 31, 2026 |
Splitting a single payment into multiple installments to stay under the limit, when the transaction is the same, is treated as evasion, not as a solution.
Where does evasion begin?
The law makes a clear distinction. An inaccurate declaration is punishable by 20% of the difference. Concealment of the obligation, i.e., evasion, is punishable by 100% of the difference, pursuant to Article 116.
Among them is the undeclared employee, a 200,000 lek fine for VAT and profit tax payers, and wage concealment, which is punishable by a 200% penalty for the same category.
What is checked most often?
- Large payments without banking documentation, especially between related parties.
- Receipts that do not match the invoiced bills.
- The cash register's balance is over the limit, which raises questions about undeclared transactions.
- Lack of POS terminal at expired-term sectors.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsFrequently asked questions
What is the cash payment limit today?
100,000 lekë for transactions between two businesses and 500,000 lekë for transactions with an individual buyer, as of January 30, 2026.
How much does it cost to cross the border?
10% of the transaction value.
Can I split the payment into several parts?
No, when the transaction is the same. Artificial separation is treated as avoidance.
When does the POS become mandatory?
For accommodation facilities, transportation, and public institutions, the deadline was May 30, 2026. For everyone else, December 31, 2026.
The new boundaries aren't an administrative burden in themselves. They simply shift the documentation to the bank, where it becomes automated and makes month-end closing easier.
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Tax evasion
Term “tax evasion” includes the intentional concealment or evasion of tax obligations, through the non-submission of documents or failure to declare data (e.g., sales or realized income), the falsification of accounting and tax documentation, obtaining falsified documents to fictionally increase business expenses or deductible VAT, leading to the inaccurate calculation of the tax amount.
The concealment of income, with the intent to hide or evade payment of tax obligations, is also considered tax evasion. Taxpayers found to have committed these violations are subject to the applicable provisions of law. No. 9920, dated 19.05.2008 “For tax procedures in the Republic of Albania,” as amended.
The withholding agent of tax, the agent of taxes or duties, if found to have committed tax evasion, shall be required to pay a fine in the following amounts:
- A penalty of 0.061 TP3T of the total amount of tax, duty, or fee, in the event that the tax has been withheld, calculated, and declared at source, or the tax, duty, or fee has been declared, but not remitted to the state budget.
- A penalty of 50% of the full amount of the tax, duty, or fee in the event that the tax at source or the tax is not withheld, or the tax or fee is not collected;
- A penalty of 100% of the full amount of the tax, levy, or fee if you withhold and fail to declare and pay the withholding tax or the tax, levy, or fee collected.
Tax evasion and avoidance of tax obligations
Warning!
Hiding or evading the payment of tax obligations by failing to submit documents or declare necessary information, submitting falsified documents or false declarations or information, which leads to the incorrect calculation of the tax amount, tax or contribution, constitutes tax evasion and is punishable by a fine equal to 100% of the difference between the amount calculated and the amount that should have been paid.
Cash payments or receipts exceeding 150,000 lek
Taxpayers, whether natural or legal persons, traders, who carry out cash sale or purchase transactions among themselves when the value of the transaction exceeds 150,000 lekë, are fined an amount equal to 101 TP3T of the value of each transaction.
This penalty shall apply to both the buyer and the seller if both are legal entities and/or traders, and if the buyer has paid the seller directly in cash.
If the buyer has paid in cash into the seller's bank account, the penalty applies only to the buyer. Likewise, if the seller, authorized by the buyer to settle the transaction, has withdrawn cash from the buyer's bank account, the penalty applies to the seller.
Source: General Directorate of Taxes.
