Albania reminded foreign digital service providers that sales of digital services to non-VAT-registered customers in Albania are subject to local VAT rules. Such providers must appoint a tax representative, register for VAT, charge 20% VAT, and pay it through the representative. For supplies to VAT-registered Albanian businesses, VAT is handled by the local recipient through reverse charge.
Albania Reminds Foreign Digital Service Providers of Local VAT Compliance Obligations
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Albania
Author: Ljubica Blagojević
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General information
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785
Content accuracy validation date:
18.06.2026
Content accuracy validation time:
08:07h
The notice applies to foreign companies supplying digital services to individuals or other persons not registered for VAT in Albania. Under Law No. 9920 “On Tax Procedures” and Law No. 92/2014 “On Value Added Tax”, these companies are required to appoint a tax representative in Albania, register for VAT, apply the standard VAT rate of 20% on their sales to non-taxable persons, and declare and pay the VAT through the appointed tax representative.
If digital services are supplied to taxable persons registered for VAT in Albania, the foreign supplier does not have to charge VAT through a tax representative. In such cases, the Albanian VAT-registered recipient is responsible for accounting for VAT under the reverse charge mechanism.
The notice also lists the types of digital services covered by the VAT rules. These include telecommunication services, radio and television broadcasting, website supply and hosting, remote maintenance of software and equipment, software supply and updates, access to images, text, information and databases, music, films, games, online events, and distance teaching.
The Tax Administration states that the notice is intended to raise awareness, encourage voluntary compliance, prevent tax avoidance, ensure equal treatment of taxpayers, and support fair market competition. If foreign companies fail to respond or meet their legal obligations within a reasonable timeframe, the Tax Administration may take administrative and legal actions under the applicable legislation.
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