E-invoicing in Albania

Law No. 92/2014 "On Electronic Invoicing in the Republic of Albania" governs e-invoicing in Albania. In order to cut expenses, boost productivity, and enhance tax compliance, the law lays forth guidelines and practices for the use of electronic invoicing.

The steps involved in e-invoicing in Albania are as follows:

• The seller uses their accounting software or an e-invoicing platform to create an electronic invoice in a defined format (XML or EDI).
• A secure electronic channel, such as email, a web portal, or a mobile application, is used by the seller to transmit the electronic invoice to the buyer. For added security, the invoice must have a digital signature or other type of electronic identity.
• The buyer receives the electronic invoice and examines it using the digital signature or another form of electronic identification to confirm its legitimacy.
• The buyer pays the electronic invoice in accordance with the agreed payment method.
• The electronic invoice must be kept by the buyer and the seller for a minimum of 10 years in a safe and easily accessible electronic format.

It's vital to keep in mind that all transactions between taxpayers who are registered for VAT and whose annual turnover exceeds ALL 8 million must use electronic invoicing (approximately USD 77,000). Taxpayers with lower yearly turnover, however, are voluntarily encouraged to utilize e-invoicing.

Also, the Albanian tax authorities have set up a common platform for electronic invoicing (EFaktura.al) that enables taxpayers to send and receive electronic invoices in a uniform format. Moreover, the platform offers real-time transaction monitoring, which deters tax fraud and avoidance.