Fiscalization for Businesses in Albania

Fiscalization is the system for real-time electronic reporting of all financial transactions to the tax administration. Every invoice issued by a business is automatically recorded in the Central Invoice System (CIS) of the General Directorate of Taxation (DPT).

Legal basis: Law No. 87/2019 "On invoices and the circulation monitoring system" and its implementing regulations.

Objectives of fiscalization:
- Full transparency of transactions;
- Reduction of tax evasion;
- Real-time monitoring of business turnover;
- Automation of tax controls;
- Simplification of processes for businesses.

How it works:
1. The business issues an invoice through its software or device;
2. The invoice is automatically sent to CIS;
3. CIS returns a unique identification code (NSLF/NIVF);
4. The invoice is printed or sent with a QR code;
5. The buyer can verify the invoice on the DPT portal.

Source: Law 87/2019. Review date: 9 October 2026.

Since full implementation (2021-2024), fiscalization is mandatory for all taxpayers — with no size exemption:

• LLCs (SHPK) and joint-stock companies (SHA) — every invoice issued;
• Sole proprietors — with an active NIPT;
• Liberal professions — lawyers, consultants, doctors, engineers;
• Retail trade — every cash sale;
• Services — every service invoice;
• E-commerce — online sales;
• NGOs — for economic activities.

Implementation phases were gradual:
- Phase 1 (2021): B2B (business-to-business) and B2G (business-to-government);
- Phase 2 (2021-2022): B2C (business-to-consumer);
- Phase 3 (2022-2024): full implementation for all.

Currently, every active taxpayer is required to fiscalize.

Source: Law 87/2019, Articles 2-5; implementing decisions.

The CIS supports several invoice types:

B2C invoice (business-to-consumer):
- Retail cash sales;
- Buyer is not identified (no NIPT);
- Printed by a fiscal cash register or POS;
- Contains a QR code for verification.

B2B invoice (business-to-business):
- Sales between businesses;
- Contains the buyer's NIPT;
- Serves as the basis for the buyer's deductible VAT.

B2G invoice (business-to-government):
- Supplies to public institutions;
- Submitted electronically through the e-Fatura portal;
- Payment is processed only after verification.

Credit/debit notes:
- Corrections to previous invoices;
- Must reference the original invoice;
- Automatically registered in CIS.

Each invoice type has a specific format and mandatory fields.

Businesses can implement fiscalization through:

Fiscal cash register (POS terminal):
- Certified physical device;
- Ideal for shops, restaurants, retail businesses;
- Automatically issues B2C invoices;
- Produces daily Z-reports.

Fiscalization software (ERP/POS software):
- Software solution certified by DPT;
- Ideal for service businesses, e-commerce, B2B;
- Integrates with the accounting system;
- Can operate on a computer, tablet, or mobile phone.

Certification requirements:
- The device or software must be certified by DPT;
- Must communicate with CIS in real time;
- Must store local copies of invoices;
- Must generate daily Z-reports (for retail devices).

The list of certified devices and software is published on the official DPT website.

Source: Law 87/2019, Articles 10-15; DPT guidelines.

Registration follows these steps:

1. Active NIPT — the business must be registered with the National Business Centre (QKB) with an active NIPT;
2. Digital certificate — obtained from AKCESK or AKSHI — required for signing invoices;
3. CIS registration — the business registers on the DPT portal;
4. Purchase of device or software — a certified solution;
5. Configuration — setting the NIPT, certificate, and parameters;
6. Testing — issuing test invoices for verification;
7. Activation — switching to production.

Digital certificate: It has a validity period (usually 1-3 years) and must be renewed before expiry. Without a certificate, the business cannot issue invoices.

We assist with every step — from the certificate to activation.

Every fiscalized invoice must contain (Law 87/2019, Articles 6-8):

• Seller's NIPT and business name;
• Buyer's NIPT (for B2B);
• Invoice serial number — automatically generated;
• Date and time of issuance;
• Description of goods or services;
• Quantity, unit price, total value;
• VAT rate and calculated VAT;
• Total value including VAT;
• Payment method — cash, bank, card, or combination;
• NSLF — invoice issuer serial number;
• NIVF — identification number assigned by CIS;
• QR code — for buyer verification.

An invoice missing mandatory elements is considered irregular — VAT on that invoice cannot be deducted by the buyer.

Source: Law 87/2019, Articles 6-8.

Businesses with B2C sales (retail, cash) are required to generate a daily Z-report at the close of each business day:

• The Z-report summarizes all transactions of the day;
• It is generated automatically by the device or software;
• It is sent to CIS;
• It must be retained (digitally or physically).

Failure to generate a Z-report results in an administrative fine.

Z-reports serve as the basis for:
- Daily cash reconciliation;
- Verification during tax audits;
- Recording cash sales in the accounting books.

The law provides for severe penalties:

Failure to issue an invoice (Law 9920/2008, Article 122):
- Fine of 100% of the uncalculated VAT;
- Repeated violations: suspension of activity for 1-30 days.

Non-compliant invoice (missing mandatory elements):
- Administrative fine;
- VAT is not accepted as deductible for the buyer.

Failure to register in CIS:
- Fines under Law 87/2019 — up to suspension of activity.

Failure to generate a Z-report:
- Administrative fine for each day.

Use of uncertified device or software:
- Fine plus obligation to change within the given deadline.

Fines are cumulative and can lead to temporary closure of the business.

Source: Law 87/2019; Law 9920/2008, Article 122.

Fiscalization and VAT are interconnected:

• Fiscalized invoice = basis for entry in the sales ledger;
• Fiscalized purchase invoice = basis for deductible VAT;
• Non-fiscalized invoice = VAT is not accepted;
• CIS and the ledgers are cross-checked automatically — discrepancies are detected.

What this means for your business:
1. Ensure every supplier issues you a fiscalized invoice;
2. Verify the invoice (QR code) before recording it in your books;
3. Your invoices must be fiscalized — without them, business clients cannot deduct VAT;
4. Z-reports must match the sales ledger.

Regular monthly bookkeeping ensures reconciliation of fiscal invoices with the ledgers.

Supplying goods or services to public institutions requires an electronic invoice through the e-Fatura portal:

• Obligation: Every business supplying goods or services to the state must issue an e-Fatura;
• Portal: efatura.tatime.gov.al;
• Process: The invoice is created online or uploaded from software, the public institution verifies it, and payment is processed;
• Payment deadline: The institution has a legal deadline for payment.

e-Fatura is particularly important for businesses participating in public tenders — supplies are contracted and payment is made exclusively through e-Fatura.

When opening a business (sole proprietorship or LLC), fiscalization must be activated before issuing the first invoice:

Steps:
1. QKB registration and obtaining the NIPT;
2. Obtaining the digital certificate (AKCESK/AKSHI);
3. CIS registration;
4. Purchasing the device or software;
5. Configuration and testing;
6. Issuing the first invoice.

Time required: 3-7 business days (the certificate may take longer);

Advice: Plan fiscalization simultaneously with business registration — without a fiscal invoice, you cannot make any lawful sale.

We offer a "registration + fiscalization" package that covers everything.

Our fiscalization service covers:

1. Consultation — assessment of your needs (device or software type);
2. Certificate — assistance in obtaining the digital certificate;
3. CIS registration — registering the business in the central system;
4. Configuration — setting parameters on the device or software;
5. Testing — verification with test invoices;
6. Training — teaching staff how to issue invoices;
7. Support — ongoing technical assistance for troubleshooting;
8. Certificate renewal — reminders and assistance before expiry.

Pricing depends on the type of solution — contact us for a quote.