How are online/electronic services taxed in Albania?

In the case of online services, the most problematic is the determination of the place of supply of services for what are called online traffic. This group only refers to the provision of services, which has spread massively in recent years and is carried out only through the Internet, web, electronic portals, etc. and that even before the classical meaning of physical supply did not exist.

So, in the classical sense of their import or export, services do not pass through customs. Circuits of a similar nature before this way of doing business came out were energy exchanges through lines, telephone impulses, etc.

In these circulations, both the ordering and the electronic service follow.

As services performed through electronic technology can be considered:

– Digital products (computer programs and their capacity increases or modifications);
– Services, which guarantee a taxable person or an individual an electronic network (eg Website);
– Services automatically generated by the computer, via the Internet or an electronic network, according to the request to receive customer data;
– Other services, which are automated and dependent on the Internet or an electronic network to exist as such;
– Remote maintenance of software and equipment;
– Services of providing images, films and games, including games of chance, music, as well as broadcasting of cultural, artistic, political, sports, scientific and entertainment activities;
– Distance teaching and educational services.

Supply of services through electronic technology is that service which is carried out via the Internet (or an electronic network similar to the Internet) and which is entirely dependent on computer technology for its supplies, which means that the service is essentially automated, involving minimal human intervention and in the absence of IT technology there is no applicability.

Unregistered persons who provide services through electronic technology for other persons must apply the registration procedures, like any other economic activity, by applying to the NRC offices.

Accounting and calculation of taxes other than VAT, which is the object of clarification, is carried out the same as other commercial activities.

According to the VAT law, the place of supply of electronic services:

– It is in Albania when the beneficiary is in Albania.

– it is not in Albania when the beneficiary is outside Albania.

According to the law, the service performed is characterized by its content, and then, in terms of the beneficiary of the service, a distinction must be made between the client within the country and, on the other hand, the client outside the country.

The online (electronic) service does not enjoy specific tax exemptions and facilities, and is taxed according to the standard tax rate and not reduced by 6%, as other media activities that currently sell and buy in Albania benefit.