Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Indirect tax snapshot
Please click on each section to expand further:
Value Added Tax (VAT) is the main type of indirect tax in Albania.
VAT applies to the following transactions:
• The supply of goods and services performed by a taxable person in Albania
• Importation of goods into Albania, regardless of the status of the importer
• Services supplied to taxable persons in Albania by service providers, of which the place of business is outside Albania
• Certain supplies of services rendered to nontaxable persons in Albania by providers whose place of business is outside Albania, such as digital services and services related to an immovable property located in Albania.
The use of goods or services purchased or produced in the course of a business activity for private purposes constitutes a taxable supply to the extent the VAT on those supplies was deducted.
Yes, there is.
A taxable person established in Albania is obliged to register for VAT purposes and charge VAT if the annual turnover in the previous 12 months exceeds ALL10 million. Once this threshold of ALL10 million is exceeded, any supply shall be subject to VAT and the taxable person is required to apply for VAT registration within 15 days.
Taxable persons with an annual turnover less than ALL10 million but greater than ALL5 million may voluntarily register for VAT, and that taxable person must remain registered for a minimum of two years.
Persons involved in import or export activities must register for VAT regardless of the amount of turnover.
No, there is no registration limit for businesses that are not established in Albania.
A “non-established business” is a business that does not have a fixed establishment in Albania. No VAT registration threshold applies to taxable supplies made in Albania by a non-established business. A non-established business must register for VAT in Albania if it engages in any of the following supplies:
• Supply of goods located in Albania at the time of supply
• Certain supplies of services to nontaxable persons in Albania, such as digital services and services related to an immovable property located in Albania
• Import and export activities in Albania
Albania follows the destination principle regarding cross-border digital services supplied to nontaxable persons in Albania. The place of supply of cross-border digital services to nontaxable persons is the place where the nontaxable person is established or where it has its permanent address or usually resides. Therefore, nonresident providers of electronically supplied services for business-to-consumer (B2C) supplies are required to register and account for VAT in Albania. This is done by appointing a VAT representative in Albania to account for and pay VAT liability. No VAT registration threshold applies.
Nonresident providers of electronically supplied services for business-to-business (B2B) supplies are not required to register for VAT in Albania. Instead, the customer is required to self-account for the VAT via the reverse-charge mechanism.
Imported goods are exempt from import duties and VAT, if the goods are purchased through the internet and imported into Albania through postal mail with a value lower than EUR22 (and its equivalent in ALL).
Online marketplaces and platforms. The above rules for the digital economy also apply to online marketplaces and platforms, i.e., the place of supply for services supplied by electronic means to nontaxable persons is the place where that person is established or where he has his permanent address or usually resides
When the taxable person responsible for VAT payment is a taxable person who is not established in the Republic of Albania, country in which VAT must be paid, the taxable person must appoint a fiscal representative in the Republic of Albania as a taxable person responsible for the VAT payment, except when the person to whom the goods or services are supplied is a taxable person registered in the Republic of Albania.
The tax period is a calendar month. Purchase and sales ledgers must be submitted monthly by the 10th day of the following month. Following the recent e-invoicing reform the VAT return is automatically generated by the tax authorities based on the information provided in the sale and purchase ledgers. However, taxable persons have the right to review and amend the VAT return accordingly.
The deadline for VAT payment is the 14th day of the month following the tax period. For imports, VAT is payable upon importation.
For a taxable person that is newly registered, the first tax period begins on the date of the registration, as stated in the certificate of registration, and ends on the last day of that month.
VAT payable by a taxable person for a tax period equals the VAT on the total taxable value of supplies made during the tax period minus any input tax allowed as a deduction.
A default penalty may be imposed by the tax authority if VAT returns are not submitted on time, or the related tax is not paid by the due date.
For late submission of VAT returns, a penalty amounting to ALL 10,000 shall be applied to all taxpayers registered for CIT purpose and the other taxpayers will be liable to the penalty amounting to ALL 5,000.
The late payment of the VAT obligation, an interest of 0.06% is calculated per each day of delay up to a maximum of 365 days (i.e., capped at 21.9%).
Taxpayers that are registered for VAT in Albania are required to complete and submit the purchase and sales books each month. The deadline for submission purchase and sales ledger is 10th of the following month.
Yes. A range of penalties can be imposed where businesses do not comply with the VAT rules.
Penalties for errors: Erroneous completion of a tax filing or a tax refund claim is subject to a penalty of 0.06% of the tax due for each day of delay, up to a maximum of 365 days. In addition, default interest applies. Failure to notify or late notification to tax authorities of changes to a taxable person’s VAT registration details is considered an administrative offense and can be subject to a penalty of ALL15,000.
Penalties for fraud: Concealment of tax obligations constitutes a fiscal evasion and is subject to a penalty of 100% of the tax amount evaded.
Improper administration of sales and purchases books and documentation is subject to a penalty that can range from ALL10,000 to ALL50,000.
The failure to issue a VAT fiscal invoice for the whole amount of the transaction is subject to a penalty of 100% of the undeclared and unpaid tax liability.
Criminal offenses carried out by taxable persons are penalized under the criminal code.
Input VAT incurred by non-established businesses in Albania is not recoverable.
A VAT invoice must show:
• Date, place and time of issuance of the invoice
• Invoice number
• Seller’s VAT number
• Buyer’s VAT number
• Name and full address of the seller
• Name and full address of the buyer
• Quantity, unit price, and description of services/goods
• VAT amount and the total amount of the invoice
• Discount rate, if any
• Total amount to be paid
• VAT rate applied
• Invoice title (e.g. tax invoice, prepaid invoice, invoice issued under special regime, invoice related to bad debt, etc.)
• Unique bill identification number
• Bill issuer security number
• QR code
• Payment details
• Operator’s code
• Code of the place of the business activity
All purchase and sales invoices have to be declared in real time to the tax authority through selfcare portal starting from 2021.
For further information on indirect tax in Albania please contact: