The Albanian Ministry of Finance has prepared a bill on the invoice and turnover control system, which aims to revolutionize the business invoicing process which from the 2020 will only be electronic from January.
The same ministry has made public the details of the operation of the new electronic system, through which each economic company will record its financial activity to the treasury.
"Starting from January 2020 every sale from the company to the consumer will be immediately transmitted to the Treasury. The same thing will happen one year later (January 2021) for business-to-business sales and those between companies and public bodies", Said Anila Denaj, Minister of Economy and Finance.
What will change
Currently, companies complete invoices manually from the tax invoices block they buy from the tax authorities. With the new system, however, companies will only release electronic invoices, a process that will be simplified for small businesses and that will permanently eliminate the tax funds that companies now have, replacing them with a smart computer program, which can be installed on both PC and smart phones.
Invoice for cash payment
The invoice for cash payment must be printed on paper with all the necessary invoice details and must be subject to the taxation procedure pursuant to this law and must be presented to the purchaser at the time of delivery of the goods or delivery.
Electronic invoice for payments
Invoice issued for the supply of goods or services in transactions in which the seller and the buyer are tax payers of simplified income tax for small businesses or taxpayers subject to VAT. In accordance with the legislation, it must be issued, sent and received as an electronic invoice, if the invoice is paid or will be paid in cash.
Electronic invoices in public procurement procedures
Invoices issued by virtue of a public procurement contract or an agreement concluded under the special law governing public procurement and which must be issued, sent and received as an electronic invoice.
The statements of Ibrahimaj and Denaj
Delina Ibrahimaj, Director of the State Treasury, explained the reasons for this change.
"The old boxes are built with 2G technology and have become obsolete throughout Europe. Countries that have completed the transition to the new system have seen an increase in tax revenues in the state of 15%. "
Through this system the aim is to reduce tax evasion. "There will no longer be tax evasion or tax concealment"Continued Minister Denaj. "Honest companies no longer have to support unfair competitors who do not pay taxes through their work. This will also reduce the corruption of the public administration."
Not just a step towards the fight against corruption - a phenomenon that is still very pervasive in the country - but also an improvement in the business environment in Albania.