Albania Updates Tax Procedures: Automated VAT Returns and Stricter Cash Limits

In January 2026, Albania enacted Law No. 79/2025, strengthening tax compliance by introducing automated VAT return filing, mandatory electronic communication with tax authorities, and transparency requirements for online businesses. The law also lowers cash payment limits and enhances enforcement measures to reduce the shadow economy, while late-filing penalties and compliance reviews remain applicable even when returns are auto-generated.

In January 2026, Albania adopted Law No. 79/2025, introducing important changes to tax procedures, VAT compliance, and cash transaction rules.

If a taxpayer fails to submit a VAT return on time, the tax system will now automatically generate and file the return within 24 hours using data from sales and purchase records.

Taxpayers may later correct the return, but:

• late-filing penalties still apply, and
• discrepancies may trigger further review.

The new rules introduce:

• mandatory electronic communication from tax authorities,
• a requirement for online businesses to publish their registration details.

The law tightens cash payment thresholds:

• B2B transactions: limit reduced to ALL 100,000 (~EUR 1,000)
• B2C transactions: new limit set at ALL 500,000 (~EUR 5,000)

These measures aim to reduce the shadow economy and improve transaction traceability.

Additional legislative measures address:

• VAT and corporate income tax rules,
• a “Fiscal Peace Agreement” encouraging voluntary financial disclosure.

All measures took effect immediately upon publication in January 2026.

In short: Albania is strengthening tax compliance through automated VAT filings, digital communication, and tighter cash limits to improve transparency and reduce tax evasion.