New Law on Invoice and Circulation Monitoring System

New Law on Invoice and Circulation Monitoring System

On 18 December 2019 the Albanian Parliament approved the Law No. 87/2019 on Invoice and Circulation Monitoring System. This Law is partly harmonized with Directive 2014/55/EU on Electronic Invoicing in Public Procurement and Directive 2006/112/EC on the Common System of Value Added Tax. Some of the existing provisions stipulated in the VAT and Tax Procedures legislation will be amended or abolished as per the schedule for implementation of this law for different categories of taxpayers.


The new Law establishes a new invoicing and monitoring system of the trading activities of taxpayers by the Albanian tax authorities. New rules are defined for the issuing of invoices for supplies of goods and services, for the classification of supplies based on categories of suppliers and recipients, for the content of invoices, the method of payment of invoices, the obligation to install and use certified devices and software, the implementation of the fiscalisation procedure, etc.

The Law applies to all registered taxpayers obliged to issue fiscal invoices, public entities, banks, financial institutions and other intermediaries facilitating the payment of electronic invoices.

Invoices - formats and issuance process

The new provisions unify the concept of the typical document (i.e. invoice) to be issued by any registered taxpayer performing a business activity in the territory of Albania. In this regard, the invoice would be a paper or an electronic document supporting any supply of goods or services which fulfill the criteria set in this law and the law on VAT. While, the invoice would be commonly used in any B2C transactions, an electronic invoice (e-invoice) would be the formal document supporting business to business (B2B) and business to government (B2G) transactions. An e-invoice can be used also for supplies made to customers not registered for tax purposes in case the consideration for the supply received is not made in cash. 

Preparation and issuance of any type of invoices should be in accordance with the fiscalisation rules set out by this law. The introduction of the new model of invoices will substitute the existing format of invoices templates or other supporting documents used by registered taxpayers in Albania.

The new provisions stipulate modalities, new invoice elements and details to be considered when issuing an invoice or an e-invoice as well as for an accompanying invoice for the supply of goods.

Central platform for invoicing

The National Agency of the Information Society (NAIS) will be the regulatory authority in charge of the design, development, maintenance and technical support of the central platform (gateway) of invoices. The Albanian Tax Authorities will be in charge of the administration of the exchanged data in the central platform. 

Fiscal systems and devices

In order to comply with the provisions of the new law, taxpayers should put in place fiscal devices and software solutions enabling the issuance and receipt of invoices and accompanying invoices, the fiscalisation and the electronic exchange of messages, the communication between taxpayers and the Information Technology System (ITS) of tax administration by using an encrypted electronic exchange network (via the internet). Existing fiscal devices used by taxpayers may continue to be in use, if they meet or are adopted to meet the requirements of this law.

Existing and new taxpayers' registration

Existing taxpayers registered as at the date of entry into force of this law and liable to issue tax invoices are registered automatically by the Tax Administration in the taxpayers' register. 

New taxpayers registered with the NBC or the tax authorities will be automatically included in the taxpayer's register or registered upon special request of such taxpayers. Registration upon request should be initiated not later than 24 hours before issuing the first invoice. The taxpayers' register is updated also with the information relating to the passive registered taxpayers when they change their status into active. 

Mandatory registrations and obtaining of certifications

Taxpayers obliged to issue invoices should declare in the central platform any place of activity, type of devices and software in use, operators dealing with issuance of invoices, internet and as well as software maintenance providers. Generally, this information is required to be registered or updated in the central platform no later than 24 hours from the change and in any case before issuing the first invoice. 

Upon registration, the central platform generates specific separate codes which would identify the place of activity and the invoicing device in any invoice to be issued. 

Requirements for invoices issuance

Taxpayers should issue their invoices electronically through their fiscal systems allowing direct interaction with the central platform of invoices administered by the Albanian tax authorities. To establish the proper connection, the installation of electronic invoicing devices or mobile devices and printers (if the printer is not integrated) and the use of a certified software solution are required. Additionally, the taxpayer issuing invoices should obtain an electronic certificate issued by NAIS and store it in the proper manner to ensure that the confidentiality and integrity of data contained therein are not altered. 

The fiscal equipment/device should sign with a digital signature all invoices issued and should use internet connection for electronic data exchange with the tax authorities. The law provides for particular procedures of notification and processing of invoices when the internet connection is temporarily interrupted and notification procedures to be followed until the connection is reestablished. 

Fiscalisation of non-cash payments

Banks, financial institutions and other intermediaries processing payments of e-invoices (non-cash payments) for clients should be registered in the central platform and use the authorized e-signature any time they perform payments on their own or on behalf of their clients.

This category of taxpayers should also install a certified software or integrated computerised system or certified web application able to link the e-invoice with the pertaining payment. The systems used for processing of payments from the purchaser's account to the supplier's account should ensure that the information for the transaction is transmitted identically to the tax authorities and the parties in transaction. 

In addition to the above provisions, the new Law provides the rules for the issuance and delivery of invoices depending on the method of payment or the category of the recipient as well as other specific provisions regulating the fiscalisation process.

Entry into force

Law No. 87/2019 dated 18 December 2019 is published in the Official Gazette No. 3 dated 20 January 2020. The provisions of this law will be implemented according to the method of payment for the supplies and the categories of suppliers as per the following schedule: 

  • 1 September 2020 for transactions for which the consideration is paid in cash and performed by taxpayers registered for VAT and CIT with annual turnover exceeding ALL 8 million;
  • 1 January 2021 for transactions for which the consideration is paid in cash and performed by taxpayers registered for VAT and small business tax with annual turnover exceeding ALL 2 million;
  • 1 January 2021 for transactions for which the consideration is paid in cash and performed by taxpayers registered only for tax on small business having an annual turnover not exceeding ALL 2 million;
  • 1 January 2021 for non-cash transactions performed between taxpayers and the government (B2G);
  • 1 July 2021 for non-cash transactions performed between taxpayers (B2B).

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