The Albanian government initiated digitalization efforts, notably the Fiscalization process in 2022, to combat informality by mandating electronic invoices for all business transactions. While this strategy aims to increase tax compliance and transparency, analysts debate whether it reflects genuine long-term improvement or political motivations. The complex tax system and administrative procedures pose challenges for SMEs, and the full impact of fiscalization, especially in sectors resistant to formalization, remains to be seen. European models suggest that flexible, context-specific strategies, including sector-specific fiscal policies and labor market innovations, could further enhance Albania’s efforts to integrate informal workers into the formal economy.
Source: altax.al
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
