Tax treatment for services of digital television platforms via online codes

Tax treatment for services of digital television platforms via online codes

The case for clarification

1-The seller / supplier is headquartered in Sweden

2- The principal agent is headquartered in Albania (the main activity is electronic transfers and Paypal licensed by Bank of Albania and operates with partial lending coefficient)

3- Customers will be located in EU countries (not in Albania)

The question

Given that there will be a contract between Sweden and Albania stating that Albania acts as the principal agent of the first, can only the invoice be declared for sale to the commission received without including invoicing in full value purchase and sale, regardless the transaction that cash movement will be carried out for full value?

Opinion 1

The company should act as the lead agent and will charge 5% VAT on the service provided by Sweden. In the meantime, the treatment lies in the billing scheme. Sweden bills Albania at full price for example 100 euro / each subscription code Albania must make a full-price invoice outside i.e. Switzerland / France. A- Between Sweden-Albania should be invoiced and reverse charge. B- Between Albania-France will be invoice for the full value of the goods. As an exempt sale, if this billing scheme is applied the Albanian entity will lose as it has 30% VAT crediting coefficient and does not even cover the commission that would earn

Opinion 2 (recommended)

The interpretation of the transaction determines whether the taxable person in Albania will be subject to tax. Playing this role, as explained above, requires a contract between the parties. It should also be placed on the billing for customers, the name of the principal.

Considered as the agent of the principal, where the service provided by him is only electronic transfers outside Albania, we think we have two billing moments:

Receipt for purchase of service from abroad;

Export of electronic service to buyers abroad;

Brokerage service export for the principal;

Billing is also done at these moments.


The invoice for purchase is for example 100 euro with VAT.

In conclusion, buying and selling registrations make VAT zero.

Invoice sale as export service for 100 euros (VAT not included). Sales invoice as export brokerage service 5 euro (VAT not included)

Partial lending = 100 + 5/100 + 5 = 1 (VAT has no effect on these types of transactions).

If this transaction scheme is mixed together with other transactions of the Albanian company, then the calculation of the partial lending formula, which continues to be unaffected by these transactions with Sweden and France / Switzerland, should be calculated.

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