Albania – VAT registration obligation for non-established B2C e-service providers

Albania joined the group of countries which require non-established e-service providers to register for VAT for supplies made to private individuals.

Effective from 1 January 2015 the Albanian VAT legislation deems the place of supply of “telecommunication, transmission and electronic services” to non-taxable persons to be where the non-taxable person receiving the service is “placed, has a permanent address or resides usually”, regardless of the place where the supplier is established.

The services in scope include the supply of

  • telecommunication services;
  • transmission services for radio and television;
  • websites, web-hosting, maintenance of software and hardware;
  • software and their update;
  • images, texts, information and evaluation of databases;
  • music, movies and games, including games of chance and betting games, transmission of political, cultural, artistic, sportive, scientific and entertainment programs;
  • e-learning;

What does it mean for you?

You need to monitor whether you make any such supplies to Albanian private customers / non-taxable persons. If so, you would be liable to VAT register from the first “lek”, as there is no registration threshold. As a non-established service provider you would also need to appoint a fiscal representative to account for VAT and to meet your VAT compliance filing obligations. The currently applicable VAT rate in Albania is 20%, so you may also want to check if your pricing is right.

For further information please contact Loreta Peci, Country Director Albania & Kosovo, at loreta.peci@al.pwc.com.

About Andras Salanki

Manager PwC Switzerland email: andras.salanki@ch.pwc.com Office: +41587924536

Andras Salanki is an international VAT advisor with 7 years of relevant professional experience. He spent one year on secondment in California, US, where he advised US multinationals on global VAT projects and also gained experience with IT and Internet companies based in the Silicon Valley.