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.