Questions and answers (Q/A) regarding the implementation of the fiscalization process.
- In the case of corrective invoices, it is the seller who issues the invoice correction for the goods delivered. What document will verify the movement of the returned goods brought by the customer?
Answer: As provided in the VAT Directive (Article 32), in cases of goods returns, the corrective invoice shall be the document for transporting the goods. - In the case of triangular sales abroad: So an Albanian company buys a good in Italy and tells the supplier to ship it to one of its clients in France. Since the goods never pass through Albania, how will the supply invoice be fiscally recorded? And what about the sales invoice?
Answer: The case presented does not clarify or prove ownership of the goods, and for this reason the goods must enter Albanian territory so that the sale is considered compliant with the regulations. - How will receipts or payments be recorded in a cash register that isn't used for cash‐on‐hand sales? For example, the company's central cash register takes in an amount from a previous customer—how is that handled in the central register?
Answer: Based on the provisions of Law No. 87/2019 (fiscalization), cash registers are initialized at cash‐sale units; any other form of payment is not considered cash. Therefore, to allow this operation, each register must be registered as a cash‐sale unit. - When purchases are made by unregistered individuals and an autofacture needs to be issued, is it mandatory to obtain the ID number, first name, and last name for each purchase?
Answer: Yes, for every purchase from unregistered individuals, the NID, first name, and last name must be obtained and recorded. - For exports in general, there is still no guidance, and in particular. For example, for entities operating under an Active Processing Regime authorization, no guidance has yet been issued, and it has not been covered as a topic in the DPT's training to date. How will the invoicing of imports and exports for these entities be fiscalized? As you know, this category of entities is also divided into two subcategories. One group of entities works with the service provider's material, where the client and the supplier are the same foreign entity (the material belongs to the service provider and is returned after adding the processing value) and a portion of entities where the client and the supplier are different—that is, they buy the material from one supplier and sell it after processing to another client. How will the invoices be fiscalized? What invoice will customs accept to carry out customs procedures, etc.? What invoice should we send to the client to enable payment, since so far the client refuses the VAT invoice that shows only the service value, but the commercial invoice in which other data related to the ACTIVE PROCESSING REGIME are also recorded, such as the value of the material, the added value which includes the value of the service + the value of the goods purchased in Albania and incorporated into the product, the net and gross weights, etc. The foreign client requests the invoice in a foreign language, not in Albanian; how will this issue be resolved during fiscalization?
Answer: The invoicing procedure for the importation of goods will use the data sent to the tax administration by the customs administration in the customs declaration, so the invoicing of invoices from abroad will be based on the pre-filled data and the taxpayer will only need to add the missing information, based on the customs declaration, in accordance with Article 25 of Directive No. 16, dated 04/03/2020 “On the Invoice and the System for Monitoring Turnover,” from the foreign taxpayer's invoice. Fiscalization will be based on the customs declaration, so the obligation to fiscalize the invoice only arises after the customs declaration is received.Meanwhile, it is worth emphasizing that the second case you presented is not one provided for in the current legislation, since for the scheme to function it is a condition that ownership of the goods remains unchanged. Furthermore, regarding the language used, we clarify that the official language of the Republic of Albania, as recognized by law, is the Albanian language (Article 14, paragraph 1, of the Constitution of Albania).
- The method and timing of issuing electronic invoices and accompanying invoices to public entities. To make it clearer, here's an example: A company that has a contract (framework agreement) with public entities for supplying and distributing goods to various facilities, depending on the public entity. In a framework agreement with the public entity, supply and distribution are carried out continuously according to the entity's requests (i.e., not all at once). For example, The public entity places a request for 1,000 kg of commodity X; the entity must first store this quantity in the public entity's central warehouse. After storing the 1,000 kg, the public entity, according to the distribution plan, orders the operator to distribute the entire 1,000 kg within one day to several locations, or decides to distribute part of the quantity that day and part the next day. What document must accompany the goods from the entity's warehouse to the public entity's central warehouse?
Answer: The accompanying invoice will be used only in cases where ownership does not change (Instruction No. 20, dated June 1, 2020). Therefore, if the goods are to be deposited with the purchasing entity, a sales invoice must be issued. - What document must accompany the goods from the public entity's central warehouse to the public facilities?
Answer: Clarified above - At what point should the electronic invoice be issued?
Answer: For every supply of goods or services to public entities, an electronic invoice must be issued in every case at the time the supply of goods or services is performed. - IM5: goods taken into ownership for processing, but for some reason processing does not take place (e.g., the export contract is not executed). The entity must transfer the goods from IM5 to IM4. How will the fiscalization be carried out? For example, in the IM5 practice the transfer is made via IM4, and in the purchase book these practices were recorded as imports without VAT. How will they be transferred to IM4 with fiscalization? Currently, one IM4 is issued for all practices.
Answer: We will coordinate with customs and provide a concrete response by email. - How will the service invoice for the exterior be prepared and how will this invoice be approved?.
Answer: In the event that the buyer or recipient of services issues a self-billing invoice for services provided by a taxable non-resident, for the supplies of services for which VAT is payable by the recipient of the supply, pursuant to paragraph 2 of Article 86 of the Law on ‘Value Added Tax’, the invoice is issued by the buyer no later than the 10th day of the month following the month in which the service was rendered (except in cases where the invoice is issued by the seller in electronic form and exchanged with the buyer through the central invoice platform). - In the case of an autofacture for a service received from a non-resident taxpayer, how will the withholding of tax at source be reflected when the legal criteria for this are met?.
Answer: In cases of occasional supplies received from various individuals who do not have the status of a trader, 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 certified by the supplying individual through their signature and other identifying information such as their first name, last name, and personal identification number, which must be recorded on the invoice. The taxpayer, as the recipient of the supply, is required to indicate his NIPT on the invoice prepared for himself. The invoice issued by the buyer, a taxable person subject to value-added tax or to corporate income tax or simplified corporate income tax, is the document that justifies deductible business expenses for the purposes of calculating corporate income tax and simplified corporate income tax. For example, a trading company pays a domestic or foreign individual (who is not registered with the Albanian tax authorities) for an occasional consulting, translation, or similar service, etc. In this case, the service-receiving company issues an invoice with the seller individual's identifying information, the value of the service, and the withholding tax calculated on the payment for this service. - For companies offering tourist tours that operate on a profit margin, until now all purchases were made without VAT and the total tour revenue—the tour's value—was calculated by subtracting all purchases as tour expenses; the difference, which is effectively the profit, must be subject to VAT. Until now, an invoice was issued stating: ”Sale under Article … for the agency's margin, with no VAT shown to the client. But with fiscalization, how will the invoice be presented for the profit margin and the VAT on that invoice?"
Answer: First, as is the case today, transactions between the client and the agency, and between the agency and other taxable persons through whom the service was made possible, must be conducted via bank accounts. Also, we clarify that from a fiscal standpoint the concept has not changed, only the procedure for reporting invoices. - How does it work with currency exchange offices that, for example, bring €10,000 from their unit to a bank and convert it into dollars? How will this transaction be taxed? Which amount will be taxed: the sale of the euros or the purchase of the dollars? Which book will it be recorded in—the sales book or the purchase books?
Answer: First, once the cash drawer opening amount has been declared in lek, invoices for the euro purchases will be issued during the day. Meanwhile, since cash is a commodity, the sale of euros converted into dollars will be reported in the sales books. We emphasize that the exchange rate is always determined in the Albanian currency (Lek). - In the case of invoicing purchases from foreign suppliers—for example, international transportation services—the entity records the supplier's invoice in its accounting while simultaneously issuing a purchase invoice. In this case, there is a duplication. How has this been resolved?
Answer: The invoicing of bills issued by non-residents is clarified in Article 7 of Law No. 87/2019 and in Article 11 of Directive No. 16. This procedure is provided by software solutions certified for this purpose. - When the purchasing entity imports goods from several foreign suppliers arriving by road transport, customs issues only one customs declaration for all suppliers combined. How is the acceptance and fiscalization of that customs declaration carried out?
Answer: The VAT law is almost fully aligned with the EU Directive, and it is assumed that for every imported good an invoice has been issued by the seller, and the fiscalization procedure will be carried out for all issued invoices. - Entities that became VAT-registered on January 1, as well as those that were already VAT-registered, will not file purchase books until September 1, 2021. Therefore, this platform will contain purchase invoice information from the moment the entity becomes fiscally registered. How will it work, for example, for a large business taxed on profit but with turnover below 10 million, which until September 1 will not declare its purchases? Where will these invoices appear, since they have not been recorded in either e-Filing or the Platform?
Answer: It will be analyzed in detail and we will provide a concrete answer. - Does the fiscal framework provide for cases of reimbursement of expenses that are not included in the taxable value (as provided in Article 33 of the VAT Guide)? These are cases where an accountant or a lawyer makes payments for his clients and pays them on his behalf. Currently, the amount paid is included on the invoice but not recorded in the books.
Answer: All transactions under Article 33 must be invoiced, and all conditions specified in this article must be met. It should be emphasized that it is a requirement that these expenses be incurred by the taxable person on behalf of his client in the course of providing a service for which the client has contracted the taxable person. These expenses are necessary and are itemized and invoiced separately on the invoice that the taxable person issues to his client. If the above conditions are not met, then it is considered a taxable service. Also, if such expenses are not proven and documented in accordance with the rules of this guidance, then their full amount or the amount not proven or documented will be considered taxable value subject to VAT. - For the accompanying invoice involving two different taxpayers without a change of ownership, we have cases of transport of returnable packaging, such as plastic crates with returnable bottles, beer kegs, etc., which are returned by the buyer to the seller after the goods have been consumed.
Answer: In these cases, there must be a contract between the parties for the provision and return of packaging. The contract also specifies the deadline for the buyer to return the packaging to the seller. Packaging that the buyer does not return to the seller is considered sold and is subject to VAT on its value. - And for contracts for the sale of apartments to individuals where the money goes into the notary's account, how will the bank payment method and their fiscalization be handled?
Answer: Bank accounts and any transactions carried out by notaries are subject to reporting in the NISA and NRSH systems at the Ministry of Justice, and this is solely for reporting purposes, while the sales invoice must be fiscally registered in accordance with the provisions of Article 6 of Instruction No. 16. - Can the entity issue a negative invoice (-) to adjust advance payment invoices that were issued before July 1 (before B2B fiscalization)?
Answer: The question is unclear. But if you're referring to correction invoices for invoices issued from a physical invoice booklet, YES, this is possible by manually recording the serial number of the first invoice, which must necessarily exist in the taxpayer's books. - In the case of companies where issuing an invoice requires an approval procedure (non-fiscal), the entity can issue the invoice on the 5th of the following month, but this invoice pertains to the previous month, Would it be possible for the invoice to be registered in the month to which it belongs? For example, the service was performed during June 2021, and the invoice should have been issued on June 30, 2021. The internal approval procedure was completed on July 2. Can this invoice be registered for the month of June so that it also appears in the buyer's purchase book for the month of June?
Answer: For supplies provided for in Article 99 of Law No. 92/2014 ”on VAT” and Article 28 of the VAT Directive, this procedure is possible and is carried out. - Issues in wholesale sales: a. Invoicing problem: shipments arrive in cases and are broken down into individual pieces. b. Human errors—workers mix up the codes; we have nearly 500 codes, either by initials or by weight. Something else is sold instead of another product: one remains in stock while the other goes into the minus. c. Weighted products have losses, e.g. (open cheese, chicken fillets, etc.). d. What about stolen products, and what about goods that break or get damaged and can no longer be sold? e.The item names on the purchase invoice don't match the names we have listed in the program. Since they often come with initials, if we leave them that way the customer won't understand what they bought, so we'll have to sell them under a different name. f. Merchandise that customers return. What should we do? In many cases they don't want to exchange it for something else; they just want their money back. It happens to us almost every day.
Answer: In principle, they may remain problematic, but it is noted that not all can be considered cases that can be handled by the Tax Administration. Exceptionally, the withdrawal of goods from use and the determination of losses are regulated by special provisions. - Where will the VAT, Withholding Tax, Payroll, and Profit/Simplified Tax return statements be filed – a) After July 2021 and b) with the full implementation of the fiscalization process, i.e., once all operators have been fiscalized (in the current e-filling system or in the new self-care system being established)?
Answer: The platform will connect to e-Taxes, and data from the purchase and sales ledgers will be used to complete the VAT return.The above declarations will continue to be made in the current e-filing system.
- For all other sectors that will await a tax invoice from small businesses with September obligations, the problem will arise that these invoices will not be accepted online in the self-care system and, consequently, those invoices that are due by 12:00 AM on the 30th.00 of each month, if they are not accepted, they will be automatically voided by the system and will remain unprocessed invoices, which will disrupt both stock and cash register balances.
Answer: Invoices issued, even if not received by the 10th of the following month, will automatically be entered in the sales book (for sellers) and the purchase book (for buyers). - The accompanying invoice for entities that sell door-to-door is still unclear in how it will work; only a few companies have been certified for the accompanying invoice, whereas for the tax invoice there are a considerable number. For example, if a company has implemented a fiscalization system from a specific operator that hasn't obtained the license for the accompanying invoice, it is necessary to purchase two different systems. For companies operating door-to-door, this system will create many problems, both regarding the liability of the sales tax invoice not confirmed by the buyer and the abuses that agents will commit.create for their companies, since the company cannot be sure the goods have been delivered to the premises, given that the invoices will no longer be signed by the buyer.
Answer: Accompanying invoices will be issued only in cases where ownership of the goods does not change, and the transaction in question will be treated as a separate point of sale that will issue sales invoices after the fiscalized accompanying invoice has been issued and the goods have been dispatched from the central warehouse. - Regarding the activation of new operators: is the activation of new operators via ID generated by the entity's payroll or by civil registry information? If it's generated from the E-SIG27 payroll at the moment a new employee is entered, who is declared 24 hours in advance, it means the self-care operator has to register after 24 hours, which is after 48 hours.
Answer – The ID is generated by the E-SIG27 payroll list. - Setting the work clock when operators log in would imply that after that time they can't issue invoices? How would this be resolved if an operator needs to create an invoice but has already passed the clock, and there's no one available to modify their work schedule?
Answer – Operator work schedule changes are made 24 hours in advance. - How will purchases made abroad but not cleared through customs be recorded? For example, an international transport company buys fuel abroad and consumes it abroad again during transport. How will this invoice be included in the business's purchase books?
Answer – The specific case can be documented as an expense by submitting additional supporting documents for the expenses. - When will the integration of invoicing with the accounting of invoices take place?
Answer – Certified software solutions enable the interaction/fiscalization of invoices from accounting programs. - It must be clarified whether the procedural guidance on business-to-individual relationships, specifically Article 59 of Law No. 9920, dated the 19th, is in force.5.2008 ON TAX PROCEDURES IN THE REPUBLIC OF ALBANIA, AS AMENDED, for cash payments.
Answer – Article 59 of Law No. 9920, dated 19.5.2008 ON TAX PROCEDURES IN THE REPUBLIC OF ALBANIA, AS AMENDED, provides that taxpayers, whether natural or legal persons engaged in trade, may not carry out sales transactions among themselves/purchase in cash when the transaction value exceeds 150,000 Lek. In the case where the buyer is an individual, there is no limit on cash payments. - How will taxation be handled for foreign companies that buy and sell outside, without the goods entering Albania—for example, buying online and selling online?
Answer – The case presented does not clarify or establish ownership of the goods, and for this reason the goods must enter Albanian territory so that the sale is considered compliant with the regulations, since Albanian legislation extends its effects only within the territory of the Republic of Albania. - We understand that an electronic invoice (E-Invoice) can be issued through the Self-Care portal provided by the Tax Administration by all VAT-exempt sole proprietors. We would suggest that the legal basis and the protocol to be followed by those entities not yet registered in Self Care be made clearer and more easily identifiable on the DPT website. We would also suggest that this option be offered to other entities, including legal persons, who, due to the nature of their business (e.g., statutory auditors), may have a limited annual invoicing volume (e.g., 50–100 invoices per year).
Answer – Based on Decision No. 220, dated March 12, 2020, ON THE DETERMINATION OF THE CATEGORY OF TAXPAYERS AND THE CRITERIA FOR THE USE OF THE SIMPLIFIED FISCALIZATION PROCEDURE “For the invoice and the turnover monitoring system,” they may issue invoices and carry out the fiscalization procedure through the use of the Central Invoice Platform, provided they simultaneously meet the following criteria:
a) They are not subject to value-added tax;
b) They have tax obligations under the simplified profit tax for small businesses.;
c) They do not have more than one location where they conduct business activities.
d) They have the legal status “Natural person” and the employment category “Self-employed sole proprietor.". - Invoices with partial settlement, i.e., the case when, at the time the invoice is issued, the customer pays part of it in cash and will pay the remainder at a later date. This payment method is not offered as an option, but when cash payment is selected, it is treated as full settlement. Meanwhile, if the client pays in cash and the balance at a later time, there is no document issued at that moment. It's more or less the same situation when you issue an invoice and don't know the method of settlement (the case of consulting invoices issued on the last day of each month). If a deferred payment is chosen, at the time of cash settlement there is no document issued to the client to prove the payment, nor is the cash balance in the system updated. Therefore, I think a type of document called a Cash Collection Mandate or something similar should be added to the legislation.
Answer – From a fiscal standpoint, the suggestion presented above is not correct under the current legislation regarding both the billing timing and the required documentation. - Invoices for foreign clients in service cases. It is not specified how the buyer will approve (accept) the invoice.
Answer – In this specific case, the Law does not require acceptance as a condition. - Another problem concerns software sales companies, which in recent weeks, due to the influx, have not provided proper service, and as a result, the decisions made by our clients become very difficult. I think the implementation deadline for this law should be postponed by at least three months and the necessary legal amendments should also be made.
Answer – The law explicitly provides for its implementation period, and the Tax Administration, in cooperation with taxpayers, is working and will continue to collaborate to resolve any issues that may have arisen or may arise in connection with the implementation period set forth by this law. - If a company issues a business-to-business invoice for cash payments for the period of July and August 2021, is it required to enter the fiscalization process?
Answer – The second phase of the fiscalization process under the Law “On the Invoice and the System for Monitoring Turnover” relates to cashless transactions between taxpayers. For cash transactions, the effects of this law begin on September 1, 2021. The company is not required to implement the fiscalization procedure for the July and August periods for cash transactions, although the law does not prohibit it from using the fiscalization procedure for these transactions via a software solution.-ic certified in accordance with legal provisions. - If a company during the July–August period receives business-to-business invoices, some of which are paid in cash and some of which are settled by bank transfer, is it required to issue all invoices as fiscalized invoices or only those settled by bank transfer? Can invoices paid in cash continue to be issued in the same way?
Answer – During this period, yes, you can issue fiscalized invoices for cashless payments, and for those invoices that are for cash transactions, they can continue to be issued in the same way until September 1, 2021, when the law “For the Invoice and the System for Monitoring Turnover” will take effect for cash transactions as well. - Will the serial numbers of unused tax invoices be deposited with the tax authorities?
Answer – We clarify that the procedure has not changed; only the method of issuing the invoice has been digitized. The serial numbers of unused tax invoices will be deposited with the Tax Administration. - If the invoice is going to be paid by bank, it's difficult to specify the bank's name, since that's information all employees will have access to? A corrective invoice – credit note can only be issued by referring to a previously issued, fiscalized invoice. If a corrective invoice – credit note needs to be drafted for a sales invoice that was issued before the start of fiscalization, how should this credit note be issued?
Answer – The correction will be made using the serial number of the previous invoice. - According to the fiscalization legislation, the fiscalized invoice for services from non-residents (auto-invoice) may be issued by the 10th of the following month. Please clarify what this means. So if the invoice arrives in October, can the company issue the self-invoice by November 10—meaning the invoice would be dated November? Wouldn't that be considered a late VAT filing for the following month?
Answer – If the invoice is issued by November 10, it will be considered for the preceding period in which the service was performed, i.e., for October, according to the example you provided. - Since banks will not accept payment of an invoice that hasn't been fiscalized, how will prepayments be handled? The law states that the taxpayer has 72 hours to issue the invoice in the case of a prepayment, but how will the bank accept a prepayment from an Albanian taxpayer when the invoice hasn't been issued yet?
Answer – The law provides that an invoice must also be issued for prepayments. - We have no clarification for VAT tax representatives who issue a monthly summary invoice for all payments made during the month by individuals. These payments are of small amounts (i.e., under 500,000 Lek). Can tax representatives continue to issue a monthly aggregated fiscalized invoice?
Answer – No, the legislation provides that the invoice must be issued at the moment the supply of goods or services takes place. - What will the invoice processing time be in the live process? In the Self-Care test it's 6 seconds per invoice. Will there be any updates in this area? It took us hours to automatically process the installment invoices (1,700 invoices).
Answer – The processing time for invoices in the live process will be 2 seconds, as specified by law. - For warehouse-to-warehouse accompanying invoices, it is unclear whether they will have to be fiscalized as of July 1 or September 1.
Answer – The accompanying invoice must be issued as a fiscalized invoice as of July 1, when the entity will transfer the goods for storage purposes without changing their ownership. - Imports as customs manifests are only imported into Self-Care; do we then have to intervene manually for the invoice? We have no idea how accessible Self-Care will be after July 1.
Answer – The customs entry form is imported into Self-Care, then the buyer prepares the invoice with all elements, based on Article 9 and Article 20 of Law No. 87/2019, and fiscalizes it no later than three days after placing the goods in this regime. The taxpayer issuing invoices under paragraphs 1 and 2 of this decision may use the Central Invoicing Platform to issue and fiscalize invoices, provided they meet all required criteria. Taxpayers who issue invoices for cash transactions, in accordance with Article 22 of Law No. 87/2019, “For the invoice and the monitoring system of turnover,” may issue invoices and carry out the fiscalization procedure through the use of the Central Invoice Platform, if they simultaneously meet the following criteria:
a) They are not subject to value-added tax;
b) They have tax obligations under the simplified profit tax for small businesses.;
c) They do not have more than one location where they conduct business activities.
d) They have the legal status “Natural person” and the employment category “Sole proprietor.” - On June 17, 2021, the tax server was not working, without any information about this technical issue, we attempted to issue an electronic invoice, which did not process at the time, displaying a message about a technical issue, but after the technical problem was resolved three hours later, the invoice appeared in the fiscalized documents but had not been sent. This forced us to correct it and issue a new invoice.
Answer – The action has been performed correctly. - In the case of services for completed work, the work status used to be requested in the attachment at first. But now we notice that this option has been removed. Will it continue this way?
Answer – To issue a fiscalized invoice for construction activities, along with all elements required for completing the electronic invoice, a work-progress attachment is required by the 10th of the following month. - Auto-Billing and Self-Invoicing: as a customer, you choose the company yourself, and is an electronic invoice required?
Answer – The obligation to issue the electronic invoice rests with the taxable person who carries out the supply. The auto-invoice is automatically fiscalized in both the purchase and sales books. - Export will be made only with a fiscalized invoice because it doesn't recognize the foreign buyer's VAT number; how will it be linked to the customs declaration?
Answer – An export invoice is not an electronic invoice. The fiscalization law has not changed tax procedures, but the way invoices are issued. - If the measuring unit is not found exactly in the list of codes, how should one proceed?
Answer – All measuring units are provided. - In the training sessions we were informed that if an invoice is not accepted or is electronically rejected by the buyer, it is automatically posted in the purchase books on the 10th of the following month, Similarly, in cases where an invoice is rejected, it is automatically posted in the purchase books on the 10th of the following month unless the seller cancels it. There is a lot of uncertainty, and even the trainers themselves do not give us a clear explanation.
Answer – If the issued invoice is not disputed by the buyer, it will be automatically recorded by both parties by the 10th of the following month. - For construction companies that operate with monthly invoices finalized by the 10th of the following month, there is no option to include the invoice declaration in the sales books for the month to which that invoice pertains.
Answer – The platform allows you to specify the billing period and the issue date, and if the period is the 1st through the 31st of the previous month, then that invoice is assigned to the specified period.
Source: General Directorate of Taxes.