E-invoicing in Albania is regulated by Law No. 92/2014 “On electronic invoicing in the Republic of Albania”. The law sets out the rules and procedures for the use of electronic invoicing, with the aim of reducing administrative costs, increasing efficiency, and improving tax compliance.
The process of e-invoicing in Albania involves the following steps:
- Issuing the electronic invoice: The seller creates an electronic invoice in a standardized format (XML or EDI) using their accounting software or an e-invoicing platform.
- Transmission of the electronic invoice: The seller sends the electronic invoice to the buyer through a secure electronic channel, such as email, a web portal, or a mobile application. The invoice must include a digital signature or other electronic means of identification to ensure its authenticity and integrity.
- Receipt of the electronic invoice: The buyer receives the electronic invoice and verifies its authenticity and integrity using the digital signature or other electronic means of identification.
- Payment of the electronic invoice: The buyer pays the invoice through the agreed payment method.
- Storage of the electronic invoice: Both the seller and the buyer must store the electronic invoice for at least ten years in a secure and accessible electronic format.
It is important to note that e-invoicing is mandatory for all transactions between taxpayers who are registered for VAT and whose annual turnover exceeds ALL 8 million (approximately USD 77,000). However, taxpayers with lower annual turnover are encouraged to use e-invoicing voluntarily.
In addition, the Albanian tax authorities have established a central electronic invoicing platform (EFaktura.al) that allows taxpayers to issue and receive electronic invoices in a standardized format. The platform also provides real-time monitoring of transactions, which helps to prevent tax fraud and evasion.
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