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The Albanian tax authorities on May 14, 2025, issued an to multinational companies providing digital services to final consumers in Albania.

The notice emphasizes increasing transparency, expanding the tax base, and strengthening voluntary compliance, by requiring companies to:

• Appoint a tax representative in Albania
• Register for value added tax (VAT)
• Apply a 20% VAT rate on sales to final consumers
• Pay the VAT liability through the tax representative

For services to businesses registered for VAT in Albania, the recipients are liable to self-assess the VAT. The notice lists services subject to VAT, including telecommunications, broadcasting, web services, software, databases, media, games, and distance teaching.

Background

In recent months, the tax authorities have sent multiple requests to several international companies for complying with Albanian VAT and tax procedures rules. Their effort aims at registration of a wide list of multinational companies in Albania by appointing a fiscal representative to comply with the VAT rules. The tax authorities are using various methods of identification of foreign entities performing transactions with Albanian consumers and request that such companies to comply with Albanian rules. As stated in the official notice, in absence of the response for registration, the tax authorities inform that will undertake any administrative and legal actions in force to bring the activities of these companies in compliance with the VAT rules in Albania.

For more information, contact a ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Chinedu Nwachukwu | chinedunwachukwu@kpmg.com

Alba Paparisto | apaparisto@kpmg.com

Sonila Selmani| sselmani@kpmg.com