Return to mapElectronic invoicing in Albania
With the enactment of Law 87/2019 on Invoicing and the Monitoring System for Business Transactions, Albania has introduced a new invoicing and financial control model called the Audit System. This system aims to promote widespread adoption of electronic invoicing across the Albanian business ecosystem.
Features of Electronic Invoicing in Albania
Albania has implemented a mandatory real-time reporting system for electronic invoices.
The introduction of electronic invoicing in Albania is governed primarily by Law 87/2019 on Invoicing and the Monitoring System for Business Transactions. This law is part of the country's efforts to digitize commercial transactions and enhance fiscal transparency.
The Albanian Tax Authority (Drejtoria e Përgjithshme e Tatimeve, DPT) oversees compliance and implementation of electronic invoicing. To facilitate this, the government has introduced a centralized invoicing platform, the Central Information System (CIS), where all invoices must be submitted for validation.
The DPT validates invoices by assigning each a unique identification number called the NIVF. This system allows taxpayers to instantly verify the status of invoices and confirm that they have been correctly declared, improving transparency and reducing the informal economy.
Mandatory Compliance
B2G Invoices (Business-to-Government): From January 1, 2021, all companies invoicing the government must use electronic invoicing.
B2B Invoices (Business-to-Business): Electronic invoicing became mandatory for transactions between businesses on July 1, 2021.
B2C Invoices (Business-to-Consumer): From September 1, 2021, all sales of goods and services to end consumers require electronic invoicing, with real-time data transmission to tax authorities.
Administrative Requirements
All businesses must obtain a digital certificate issued by the National Agency for Information Society (AKSHI). This certificate is essential for electronically signing invoices and other fiscal documents.
In addition to the digital certificate, businesses must use approved invoicing software or certified fiscal devices authorized by the Albanian tax authorities. This ensures compliance with the country's legal and technical requirements for invoice issuance and submission.
For businesses conducting in-person transactions (B2C), using fiscal cash registers or certified fiscal devices is mandatory.
Invoice Format
Albania supports two formats for issuing electronic invoices: UN/CEFACT and UBL 2.1. Both are widely used across Europe and internationally, ensuring compatibility with other countries' systems.
The UN/CEFACT standard uses XML to structure invoice data.
Similarly, UBL 2.1 employs XML for electronic document formatting, enabling process automation through standardization.
Electronic Signature
An advanced electronic signature, issued by the Albanian tax authority, is mandatory for all invoices.
Invoice Archiving
Invoices must be stored electronically for five full years, starting from the year following their issuance. The storage process must guarantee the authenticity of the origin, integrity of the content, and readability of the documents.
How the Audit System Works in Albania
The Audit System in Albania regulates the issuance, transmission, validation, and storage of electronic invoices, ensuring strict fiscal control and greater transparency in commercial transactions. Below is a detailed breakdown of each phase of the process.
Generating the XML
Invoice data is extracted from the issuer’s ERP system and generated in the standardized XML format (UN/CEFACT or UBL 2.1).
In case of errors or discrepancies in an issued invoice, a corrective invoice must be generated. The corrective invoice must reference the original invoice, specifying which elements are being corrected and the reason for the correction.
Electronic Signature
The XML invoice must be electronically signed using the digital certificate issued by AKSHI (National Agency for Information Society).
Connection and Transmission to the National Platform
Once electronically signed, the invoice must be transmitted to the centralized invoicing platform known as the Central Information System (CIS), managed by the General Directorate of Taxes (DPT).
Validation of the Electronic Invoice
After the electronic invoice is transmitted to the CIS, the DPT validates the document. If the invoice is valid, the CIS assigns:
- QR Code: Enables quick verification of the invoice by the recipient and tax authorities.
- Unique Invoice Identification Number (NIVF - Numrin Identifikues të Veçantë të Faturës): A unique code that unambiguously identifies each invoice in the fiscal system.
Electronic Archiving
The XML invoice file must be stored electronically for a period of 5 full years starting from the year following its issuance.
Delivery to the Recipient
The CIS portal does not automatically send the electronic invoice to the recipient. Recipients must access the CIS to download the invoices.
The recipient can verify the authenticity of the invoice using the QR code and the NIVF, facilitating compliance and reducing the risk of fraud.
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