A recent directive from the Albanian Tax Administration introduces new VAT compliance requirements for foreign companies supplying digital services to non-VAT registered clients in Albania. This update is part of Albania's broader strategy to enhance tax transparency in the growing digital economy. Companies offering streaming, hosting, telecommunications, and e-learning services are now expected to register for VAT in Albania—making it essential to understand when and how these obligations apply.
New VAT Requirements for Digital Service Providers
Under the new guidance, foreign digital service providers must register for VAT in Albania if they supply services directly to Albanian consumers or non-VAT registered businesses.
Covered services include:
- Online streaming (radio, television)
- Website maintenance and hosting
- Telecommunications
- Software and digital downloads
- Online courses and remote e-learning platforms
Note: If services are provided to VAT-registered Albanian entities, the reverse-charge mechanism applies, and VAT responsibilities shift to the Albanian business receiving the service.
This change supports fair competition and aligns Albania with broader EU VAT practices, where the destination principle ensures tax is paid where consumption occurs.
Failure to comply may lead to further enforcement measures, as indicated by the General Directorate of Taxes, particularly for non-compliant companies operating without registration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
