- The tax administration has the right, under Article 60 of Law No. 9920, dated 19.May 19, 2008 “On Tax Procedures in the Republic of Albania,” as amended, to request at any time information and documentation from the taxpayer, including an inventory of raw materials, finished products, and goods for resale.
- The specific case from December 2018, with a deadline of January 10, 2019, was a request from that period, with a deadline that had already passed by years.
- Whether or not the DPT explicitly requires it, an accurate physical inventory at year-end is the foundation of the financial statements and the income tax return.
- The current year-end deadlines are March 31 for the income tax return and July 31 for the filing of financial statements with the QKB.
The tax administration has the legal right to request from any taxpayer information and documentation regarding their activities at any time, not only at the end of the year. One concrete form of this right is the request for an analytical inventory, that is, a detailed list of raw materials, finished products, and goods for resale, including units, quantities, price, and value.
From our daily work, we often see that businesses keep accurate inventory only when someone explicitly requests it, whether it's the DPT or an inspection. In fact, accurate inventory must be maintained continuously, because it is precisely what feeds the figures into the financial statements and the income tax return filed each year.
Read also: What do you submit and by when?.
The DPT's right to request information and documentation
Legal basis, Article 60 of Law No. 9920/2008
Article 60 of Law No. 9920/2008 “On Tax Procedures in the Republic of Albania,” as amended, grants the tax administration the right to request from the taxpayer any information necessary for the assessment of tax liabilities. This general basis supports various specific requests throughout the year, including requests for inventory.
The December 2018 case as a concrete example
In December 2018, the DPT requested taxpayers to submit the analytical inventory as of December 31, 2018, by January 10, 2019, in written form or via e-Filing. This was a concrete instance of exercising the right under Article 60, with a specific deadline that has already passed, but the legal mechanism that enabled it remains the same today.
Why accurate inventory matters without special request
Link to the financial statements and the income statement
The year-end inventory value is one of the figures that directly affects the accounting result and, through it, the corporate tax liability reported by March 31. An incorrect inventory automatically results in an inaccurate financial statement and tax return, whether or not the DPT has requested it separately.
On-site inspection risk
As emphasized in the 2018 notice, based on analyses by the Directorate of Control, the taxpayer may be subject to an on-site audit to verify the accuracy of the declared inventory. This risk remains present today whenever the submitted inventory does not correspond to the actual warehouse stock.
A ready and accurate inventory includes:
- raw material, unit, quantity, price and value
- Ready-made products, but with the same detail
- Goods purchased for resale, still unsold at the end of the period.
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 notificationsHow do you keep your inventory up to date?
Periodic reconciliation, not just at year-end.
Physical inventory is better reconciled periodically throughout the year, not just once on December 31. That way, if the DPT requires immediate documentation, as it did in 2018, the business already has it ready, without rushing and without the risk of error.
Documentation and the responsible party's signature
Any officially submitted inventory, whether in written or electronic form, must be signed by the company's representative in order to be valid as an official document in the event of a subsequent audit.
Why it Matters
The inventory is not an isolated formality. It is the starting point for the financial statements, the income statement, and any audit that may follow.
The cost of incorrect inventory
An overstated or understated inventory distorts the year's financial results and may draw the attention of the tax authorities when compared with periodic VAT returns and third-party data.
How we handle this with our clients
Inventory reconciliation is part of our periodic book closing so that the financial statements and income statement are always based on verified figures, not hastily estimated at year-end.
Frequently asked questions
Do I have to submit the inventory to the DPT every year?
Not as an automatic rule. DPT may explicitly request it in specific cases, in accordance with the right granted by Article 60 of Law No. 9920/2008. Regardless of the request, an accurate inventory must in any event be maintained as the basis for the financial statements.
What happened to the January 10, 2019 deadline?
It was the specific notification deadline for 2018, tied only to the December 31, 2018 inventory. That deadline has passed and does not represent an open obligation today.
Where do I submit the annual financial statements today?
Financial statements are filed with the QKB within seven months of the end of the fiscal year, usually by July 31. The details and the example calculation are available on our website. What do you submit and by when?.
Do I risk an audit if the inventory is incorrect?
Yes, especially when discrepancies are apparent compared to periodic statements or third-party data. A regularly reconciled inventory significantly reduces this risk.
The original December 2018 notice pertains only to the inventory as of December 31, 2018, which is now past due. For the current year-end deadlines and documents, see What do you submit and by when?.
