e-Invoicing in Albania: Timeline, Guidelines, Process, and Steps for Implementation

Albania has embraced digitalization through e-Invoicing to develop its tax platform and bring it to European levels. Initiated on 1 January 2021 for B2G invoices, it further covered B2B invoices from 1 July 2021, to report electronic invoices to the General Directorate of Taxes (DPT). Subsequently, starting from September 2021, B2C transactions were also under this mandate.

Regulated by the General Directorate of Taxes (GDT), the electronic invoicing system requires companies to electronically send and deliver invoices to the government portal. The key aim of e-Invoicing in Albania is to combat tax fraud, promote transparency, and increase the efficiency of tax collection. The invoices should be delivered in ISO/IEC 19845:2015 (UBL 2.1) or UN/CEFACT (Schema XML 16B) formats.

The following guide will take you through how to implement e-Invoicing in Albania successfully, along with the necessary timelines, guidelines, and steps for seamless adoption.

What is e-Invoicing in Albania?

e-Invoicing in Albania is an electronic invoicing system launched under Law No. 87/2019 to bring financial control into the modern era and increase transparency. The system, also referred to as the Audit System, obliges companies to send and submit B2G, B2B, and B2C invoices electronically to the General Directorate of Taxes (DPT) via a central system referred to as the Central Information System (CIS). The main aim of this system is to prevent tax evasion, encourage compliance and bring it at par with European Union level.

e-Invoice Implementation Timeline

The e-Invoicing implementation in Albania was carried out in a phased manner to ensure a smooth transition for businesses.

e-Invoicing Process in Albania

The e-Invoicing process in Albania follows a structured approach to ensure transparency and compliance with the taxation system. Here’s how it works:

1. Issuance Requirements of e-Invoices: Companies must have an electronic certificate issued by the National Agency for Information Society (AKSHI). Companies should use specialized software to prepare and issue invoices, in accordance with legal requirements. 
2. Central Information System (CIS): All e-invoices in Albania must be directed to the Central Information System (CIS) for verification in real-time. The CIS portal is managed by the General Directorate for Tax (DPT).
3. Validation and Unique Code Assignment: Each invoice is checked by the DPT and issued a Unique Invoice Identification Number (NIVF). A PDF invoice is issued, with a QR code of the NIVF. Invoices can be downloaded or printed from the CIS portal.
4. Correction of Invoices: In case of mistakes, a corrective invoice shall be issued referring to the original invoice.

e-Invoicing Compliance Guidelines

To ensure proper e-invoicing compliance in Albania, businesses must follow these e-Invoice guidelines as laid down by the DPT: 

• Invoice Storage: Store invoices digitally for 5 years from the date of issue. Protect the authenticity, integrity, and legibility of these invoices.
• Format: UN/CEFACT (XML 16B) or ISO/IEC 19845:2015 (UBL 2.1) format.
• Certificate: Get an e-certificate from AKSHI.
• e-Signature: Not required digitally, but an electronic certificate is necessary.
• Retention: Both sender and recipient are required to keep invoices for 5 years.

Who Needs to Comply with e-Invoicing in Albania?

All businesses involved in invoicing must comply with e-Invoicing regulations: 

• B2G Transactions: Mandatory since January 1st, 2021.
• B2B Transactions: Mandatory since July 1st, 2021.
• B2C Transactions: Mandatory since September 1st, 2021
• Public organizations.
• Banks, financial institutions, and intermediaries offering electronic invoice payment services.

Benefits of e-Invoicing in Albania

Albania e-Invoicing provides numerous benefits to businesses. Here are a few of them: 

• Streamlined Invoicing Process: Automates billing, saving time and reducing errors.
• Cost Efficiency: Reduces administrative and management expenses through the removal of paper invoicing.
• Improved Financial Accuracy: Real-time validation eliminates mistakes and improves accuracy.
• Transparency and Compliance: Guarantees invoices are properly reported and audited.
• Competitive Edge: Meeting European standards boosts business credibility and prepares businesses for international markets.

How can ClearTax help a business with e-Invoicing in Albania?

ClearTax, a trusted Albania e-Invoicing solution provider, assists companies in meeting Albania's e-Invoicing rules by providing:

• Seamless Integration with ERP & POS: Automatically sends and submits invoices to the Central Information System (CIS).
• Real-Time Compliance Verifications: Supports invoices as per Albania's e-Invoicing standards.
• Cloud-Based e-Invoicing Platform: Automatically tracks, validates, and manages invoices.
• Automated Compliance & Reporting Alerts: Reduces the likelihood of late or non-compliance filing.

Conclusion

The e-Invoicing process in Albania mandates companies to issue and seal invoices in real time to the Central Information System (CIS) for authentication. The system then verifies the invoices, assigns a unique code to them, and validates e-Invoice in a  PDF with a QR code. This PDF can then be downloaded and sent to the recipients. To simplify this process, companies can opt for reliable e-Invoicing software like ClearTax that not only complies with the government’s regulations but also integrates seamlessly with your existing systems. Ensure hassle-free compliance with ClearTax, your trusted e-Invoicing partner in Albania!