Natural person with a turnover up to ALL 2 million

1. You are a natural person if:

a.You are an individual and are asking to operate an independent trade activity;
b. Are self-employed, alone and/or with employees that are unpaid family members and
other persons.
c.You register at the National Business Centre (NBC) as a natural person.
For more details, please click at:
http://www.qkb.gov.al/informacion-mbi-proceduren/regjistri-i-biznesit/regjistrimi-fillestar/

2. The registration of the business at NBC is always mandatory:

a. Prior to the effective start of the activity of your business.

3. Places where you can register:

a. At the NBC front desks or authorized by the latter at the Municipality and chambers of
commerce;
b. At the front desks of the Agency providing Integrated Public Services (ADISA); and,
c. At e-Albania online platform.

4. To register your business, you must submit several mandatory documents and data:
a. Documents:
i. Identity card of the person to be registered;

Careful: Follow instructions on how to apply on e-Albania platform.

b. Minimum mandatory data to be included in the request for registration:

i. Type of economic activity;
ii. Address of business location;
iii.The status as a sole self-employed and/or with employees that are unpaid family
members or other employees.

Careful: An individual can register only once at the NBC as a natural person. For any additional
activity, you shall get the same NUIS, but with different serial numbers.

c. Estimated annual turnover:

It serves as the basis on which tax liabilities/responsibilities of the natural person are determined
from the moment of registration.
Below you will find the types of tax liabilities as per the turnover level.

Table 1 – Types of tax liabilities depending on the business annual turnover

Tax responsibilities/Types of tax liabilities
The contribution of
Annual turnover Value Added
social and health Simplified Income Withhol
(In ALL) Tax
care insurances and income tax tax ding tax
(VAT)
PIT
0-2 million Yes No Yes No Yes
Above 2 to 5 million Yes Yes Yes No Yes
Above 5 to 8 million Yes Yes Yes No Yes
Above 8 million Yes Yes No Yes Yes

Careful: Given that you are not registered for VAT, you cannot credit (refund) VAT
paid for purchased goods/services.

Despite being in the threshold of turnover to be registered as a VAT payer:

1. You are entitled to voluntarily register as payer of VAT.
2. You shall be obliged to register to declare and pay VAT, if:
a. You purchase imported goods or services to sell them and not to invest in the business;
b. You exercise a profession that is subject to VAT payment, despite the turnover

5. The process of registration at the NBC shall be completed upon having:

a. Completed and submitted the form of registration with the above data;
b. Received the certificate of registration with the unique identification number, which is
called the Identification Number of the Taxable Person (NUIS).

This process takes a working day.

On the next day you can verify the status of your request to register by accessing the website of
NBC at: http://www.qkb.gov.al
i. In case the request is suspended, you shall have 21 days to fill in the gaps.
ii. In case the registration request is refused, a new request shall be submitted, upon removing
all causes of refusal.

6. Registration of business at the NBC is at the same time:

Its registration at the central and local Tax Administration, registration at the social insurances
and health care insurances scheme and registration at the labour inspectorate.

7. Immediately after the initial registration at the NBC:

a. Open your account at the website of the General Directorate of Taxes (GDT) using:
i. NUIS, as the username, and
ii. “Tatimetemia12”, as the initial password.

Careful:
1. Tax liabilities shall start upon the date of registration at the NBC.
2. Verify and be informed on the tax liabilities listed under the category “My profile”.
3. Declarations for tax liabilities shall be done through this online account only.
4. In case of problems during the registration and use of your online account:
a) Please call the Call Centre at the GDT at the telephone number 0800 00 02;
b) Receive direct instructions at the “live chat” section of this service;
c) Appear personally at the Regional Directorate of Taxes (RDT), or
d) Access the website of GDT at: https://www.tatime.gov.al/c/7/200/udhezues-perdorimi

8. Immediately upon opening the online account at the GDT:

 a. Please declare in your online account:
i. Just yourself, if you have any employees and unpaid family workers above 16 years
old, not later than 2 days upon registration at the NBC.
ii. Just yourself, if you are registered as a sole self-employed and do not have employees
and unpaid family workers above 16 years old, not later than 3 days prior to the
deadline of submitting the declaration of social insurances and health care
contributions. In such case the calculation of liabilities shall begin upon date of
registration at the NBC.
b. Visit the Local Tax Office at your Municipality:
i. Submit a copy of the property title/rent agreement for the business place/places; and
ii. Ask for the notification of types, amounts and deadlines to pay your local taxes.

Careful: If the premises are rented, the owner shall pay the tax on immovable property.
c. Visit the RDT to:
i. Get the book of simple sale tax invoices, tax receipts, accompanying invoices and book
of purchases and sales for small business without VAT; and
ii. Submit a copy of the property title/rent agreement for the business place/places. (Such
document can be also submitted electronically through the online declaration account at
www.tatime.gov.al)
d. Get a fiscal equipment at the authorized companies, within 15 days upon registration, if
you want to sell in cash;
Careful: Till you receive the fiscal equipment and/or in case the fiscal equipment is out of
order, you shall issue a tax receipt for every sale.

e. Open a bank account on behalf of the Natural Person for collections and payments of your
business.

Careful: Transactions in cash shall not be carried out among two natural or legal trade persons
for amount exceeding ALL 150,000.

9. With regards to the Tax Administration, you shall be entitled to:

b. Get information and clarification on the legislation;
c. Maintain confidentiality of your data;
d. Get previous notice on the acts related to tax liabilities;
e. Be inspected on due time, due place and within the legal deadlines;
f. Be heard before a decision is taken related to your business;
g. Get information from your tax folder;
h. Be represented by persons authorized from you;
i. Submit a complaint for any actions and omissions from the administration;
j. Have an independent administrative review of the submitted complaints;
k. Get or print online (e-Albania) certificates on:
i. Tax liabilities;
ii. Paid liabilities;
iii. Payment of social insurances and health care contributions;
iv. Turnover for the last 3 years;
v. The status as a taxpayer (active, passive) and concrete deadlines for every case;
 vi. Possession of a vehicle;
vii. Registration of investor;
viii. Contributions paid for the individual;
ix. Certificate for unregistered individuals.

10. Documents to be displayed on the business premises:

a. The certificate of registration (NUIS);
b. The list of sale prices for every good/service provided;
c. Notification/warning for the client to receive the tax coupon for cash payments and that
they are entitled to not perform the transaction for the value of good or service provided, if
the salesperson does not issue a tax invoice or tax coupon.

11. To document the sales and purchases you shall:

a. Issue a tax coupon for every cash sale;
b. Issue a simple tax invoice together with the tax coupon when:
i. Performing sales to another trader, and
ii. The individual purchaser asks for a tax invoice.
c. Issue a simple tax invoice in case you sell goods or provide services paid later through the
bank;
d. Issue a tax invoice from your book with a note saying “Invoice issued by the purchaser”
for purchases made from individuals, non-trade persons and put there his ID card number,
in order for the invoice to be valid for tax purposes;
e. Fill in the sale invoices with all the required data: date, data of the purchaser, trade
name/name of the individual, NUIS/personal number, address, transporter, description of
goods/services, unit, price, value, amount of invoice, etc;
f. Close the fiscal equipment at the end of each business day and transmit its data. On the
next day the registration of coupons will start from the scratch;
g. Get a simple or VAT tax invoice (depending from the tax liability of the salesperson) for
every purchase conducted for your business.

Careful: In case of failure to issue an invoice, to document stock goods and in case of
movement of goods not accompanied with tax documents, the tax administration shall register
you as a VAT payer.

12. Declaring employees and dismissals and their salaries:

a. Hiring and dismissals shall be declared online:
i. 1 day prior to the hiring, and
ii. Within 10 days upon dismissal.
b. Only salaries paid through the bank system shall be recognized as deductible expenses.

13. Tax liabilities to be paid:

The amount of tax liabilities shall be calculated by multiplying the amount (basis) on which
taxes are calculated as per the tax rate determined for each type of taxes.

Table 2–Tax liabilities for natural persons with an annual turnover up to ALL 2 million
No. Type of liability Tax rate The amount on which the tax rate is applied
 Contributions for social
Salary for insurance purposes, but not below the
insurances for the self-
1. 23% minimum salary and above the maximum monthly
employed and unpaid
salary (ALL 26,000÷ALL114,670)
family workers
Contributions for health
care insurances for the self- Double of the monthly minimum salary (2x ALL
2. 3,4%
employed and unpaid 26,000)
family workers
Gross actual monthly salary, but not below the
Contributions for social
3. 24.5% minimum and above the maximum monthly salary
insurances of the employee
(ALL 26,000÷ALL 114,670)
Contributions for health
Gross actual monthly salary but not below the
4. care insurances of the 3.4%
minimum monthly salary (ALL 26,000)
employee
Gross monthly salary up to ALL 30,000;
0%
Personal Income Tax from The part of the gross monthly salary above ALL
13%
5. employment of the 30,000÷ALL 150,000
employee The part of the gross monthly salary above ALL
23%
150,000
6. Simplified income tax 0% Gross income (before taxes)
The gross amount of salary for unregistered
7. Withholding tax 15%
individuals

14. Period and manner of declaring tax liabilities

The periods for which declaration of tax liabilities is done, depend from the type of liability
(table 3). The first declaration for tax liabilities is done by 20 th of the month or trimester upon the
month of registration, depending from the type of liability.

Table 3 – Period and manner of declaring tax liabilities

No. Type of tax liability Deadline for Manner of submitting the

declaration declaration
1. Contributions of social and
Quarterly Online
health care insurances/PIT
2. Simplified income tax Annual Online
3. Withholding tax Monthly Online

15. Deadlines for declaring and paying tax liabilities

The deadline for declaring tax liabilities differs depending from the type of liability. The last date
of declaration shall also be the date to perform the payment. Below you will find the last dates to
declare and pay tax liabilities, as well as the place of doing the payment.

Table 4 – Deadlines to declare and pay, as well as the place where to pay tax liabilities
No. Type of tax liability Deadline of declaration and payment of liability Place of
payment
1. Contributions of social By 20th of the month upon termination of the Bank
 and health care trimester (20 April; 20 July, 20 October; 20
insurances/PIT January)
2. Simplified income tax By 10th of February of the next year (just for No place,
declaration and not payment) rate 0%
3. Withholding tax Every month, by 20th of the next month Bank

Careful: If the tax liabilities have arisen due to the evaluation conducted by the Tax Administration,
they shall be paid within 30 days upon receipt of notification.

16. Changes to the tax declarations for errors or inaccuracies shall be made if:
a. Not more than 36 months have passed away from the initial declaration and you have not
undergone an inspection from the tax administration during this time;
b. You have undergone an inspection, but you declare a tax liability that is higher compared
to the inspection;

17. Liabilities can be paid with instalments if:

a. You have financial difficulties;
b. You enter into an agreement to pay in instalments with the RDT;
c. You prepay 20% of the liability;
d. You ensure to close all liabilities by December of the next year, otherwise the agreement
shall not be accepted or you will be required to put a bank guarantee.

Careful: The agreement to pay in instalments can be terminated at any time if:
1. Payments are not performed pursuant to the agreement;
2. You fail to pay the new liabilities arising upon the agreement.

An agreement to pay in instalments shall not be accepted for the tax liability self-declared by
the taxpayer, which has been calculated, collected or withheld from him, including social
insurances and health care contributions.

18. Refunding or compensations of tax liabilities shall be made by:

a. Being automatically compensated by the online tax system, for every overpaid tax
liability, within the same liability, apart from the liability of insurances contributions;
b. Asking to have the money returned for the amounts of overpaid tax liabilities;
c. Leaving the overpayment to pay future liabilities;
d. Asking the tax administration to transfer the overpaid liabilities to pay other liabilities,
apart from the compensations of insurances contributions.

19. Failure to declare the tax liability and failure to pay on time result in costs:
a. A fine shall be imposed for failure to declare;
b. After 5 days, from the date to declare, the tax administration shall send a written
notification to remind you on the liability;
c. Within 10 days upon the notification, the administration shall automatically assess the
missing declaration, which:
i. Cannot be appealed, but
ii. Can be annulled if you submit the declaration within the new determined deadline.
 d. The online system shall begin with the automatic calculation of fines and late payments
interests for the outstanding liability.

20. Deadline and payment of local taxes and fees liabilities

a. The liabilities for local taxes and fees shall be determined by law and by Decision of the
Municipal Councils (DMC);
b. Local taxes shall be calculated and paid on annual basis, apart from the year of registration
or suspension/de-registration of the activity which will be calculated in proportion to the
period of the fiscal year that the business has been active;
c. Fees and taxes differ as per the business type and nature of activity, but the most typical
ones are:
i. Tax on immovable property, which includes buildings and agricultural lands;
ii. Fees for cleaning, occupying public spaces, tables and others imposed by DMC.

21. Tax liabilities can also change upon the initial registration
a. For VAT:
i. You shall register for VAT 15 days upon the date when the turnover exceeds the
threshold of ALL 2 million;
ii. The calculation of VAT shall be done for the amount exceeding the threshold;
iii. The calculation of the minimum threshold of turnover for the first year shall be done by
multiplying the number of months from the date of registration at the NBC with the
proportional monthly turnover ALL 166,667.
iv. Registration under VAT shall entitle you to deduct VAT for goods in stock, purchased
with VAT tax invoice prior to the registration under this liability, but not earlier than 12
months;
v. In case the actual turnover falls below the registration threshold for VAT, de-registration
shall be made through a request sent to the RDT, but it shall become effective 12 months
upon the date of submitting the request.
b. Income tax:
If the turnover of a calendar year exceeds the threshold of ALL 8 million, you shall submit a
request to be registered to pay income tax within 15 days from the date of exceeding this
threshold.

Careful: Depending from the area of activity, you might also need to be registered for other
specific tax liabilities such as mineral royalties.

22. Changes in organization and location that need to be registered at the NBC
a. Change of business address.
b. Opening/closing a secondary address.
c. Changing/adding an object of activity.
These changes shall be declared at the NBC by the natural person or any person authorized by
him.

Careful: Do not start an activity in a secondary address without registering it before at the
NBC.
 Get a fiscal equipment for every secondary address if you perform cash payments.

A secondary address shall also be considered the means for:

a. Selling goods door to door and
b. Transporting goods and passengers for third parties.

Regarding the vehicles of the company used only for the transportation of goods for your own
or your purchaser, please take a certificate on vehicle possession, online, in the e-Albania
portal.

23. Keeping tax and accounting data

a. The documents that shall be kept for tax purposes are: invoices of purchase and sales, the
books of purchases and sales, goods inventory and every other record-keeping required by
the law on taxes and accounting;
b. The tax documents shall be stored for a 5-year period upon termination of the fiscal year;
c. Accounting and compiling of annual financial statements shall be based on the law on
accounting and applicable standards of financial reporting.

24. Tax inspection

a. The Tax Administration shall be entitled to inspect tax declarations, accounts, books and
tax records of the taxpayer, including all the documentation related to income and
expenses;
b. The types of tax inspections are:
i. Thorough on-site inspection, with a 30-day prior notice;
ii. Fiscal visits, with a 10-day prior notice;
iii. On site verification, without any prior notice, but based on a daily work order.

25. Forced collection of tax liabilities shall be done when:

a. Tax liabilities have not been paid as per the legal deadlines;
b. You have not exercised the right to complaint at the Directorate of Tax Appeal (DTA);
c. All the phases of administrative and judicial review have been exhausted.
The following steps shall be taken for forced collection:
i. Sending a notice to the taxpayer, asking him to pay/Order to block the bank accounts with
express mail or electronically/ensuring the tax liability by imposing a mortgage-backed
security and/or mortgage / Seize and confiscate the blocked property / Selling the seized
property / transferring the responsibility of the outstanding liability to third parties.
ii. Upon sending the notification and request for payment, a measure to confiscate up to 50%
of the daily turnover can be taken;
iii. A request to suspend any actions to the NBC and Customs shall be submitted.

26. A complaint shall be submitted:

a. At DTA at the Ministry of Finances and Municipality;
b. For evaluations conducted by the Tax Administration and any other decision that impacts
on the tax liability, apart from the evaluation of the tax declaration done in absentia;
c. Within 30 days upon receipt of the notification;
d. Upon payment or imposition of the guarantee for the liability appealed, but not for late
 payment interests and fines;
e. Through judiciary as well when the act has been appealed administratively before.

27. Fines and late payment interests:

a. Shall be imposed for declarations and payments of tax liabilities beyond the legal
deadlines;
b. Shall be applied for concealing liabilities, failure to issue invoices of sale and/or tax
coupons, failure to declare the real salary, erroneous completion of tax declarations,
failure to install and maintain fiscal equipment, failure to declare employees, failure to
keep tax/accounting documents, etc.;
c. Both shall be imposed, but late payment interests shall begin upon payment deadline and
shall be interrupted on the date the liability is paid;
d. Fines can be appealed, whereas late payment interests not.

Careful: Concealing or avoiding the tax liabilities, for any of the above reasons, apart from
being classified as fiscal evasion, might lead to a criminal prosecution as well.

28. Going to the passive tax status:

a. Can be done only by the RDT if:
i. You suspend the activity by applying at the NBC, for a specified deadline or not;
ii. You do not submit the tax declaration for the last 12 months;
iii. You submit tax declarations with no activity for 12 consecutive months;
b. Allows you to interrupt declarations for all types of tax liabilities;
c. Requires to submit to the RDT all serial numbers of the books of purchase invoices not
used.

Careful:
a. You cannot suspend the activity at the NBC without first paying all the tax liabilities;
b. You cannot carry out any activity in the passive status;
c. You must submit the simplified income tax declaration for the months you have been
operational;
d. In order to restart the activity, you must apply at the NBC. If the transfer to the passive
status has been carried out directly by the RDT, reactivation shall be done with a request at
the Tax Administration.

29. De-registration shall be done:

a. By voluntarily declaring the closure of the activity at the NBC;
b. By submitting the tax declarations of the last months and the annual declaration of
simplified income tax;
c. By paying off all the tax liabilities toward the Tax Administration and Municipality;
d. Within 30 days upon application to close the activity, if there are no outstanding liabilities.
Careful:
a. Even upon de-registration, you shall remain responsible for liabilities toward third parties
and public authorities.
b. You shall submit at the Regional Directorate of Taxes all the books of sale invoices not
used.
c. Upon de-registration at the NBC, please contact with the authorized company of fiscal
equipment to deactivate it.