Modalities of the tax representative for VAT

The person appointed as a tax representative must be a taxable person in Albania.

For the purposes of fulfilling the obligation as a tax representative, each taxable person who is designated as such must be registered separately with an identification number as a tax representative.

This person appointed as a tax representative is personally responsible for fulfilling all obligations, including any fines or penalties, for which the person he represents is liable and also enjoys all the rights of the person he represents.

If the liable person does not appoint a tax representative, all duties and penalties payable by him shall be paid by the domestic recipient of the supply.

The procedure for the registration and de-registration of the tax representative is implemented as defined in the law and the instructions for tax procedures in Republic of Albania, and the necessary documentation for registration is as follows:

– the application form “Request for registration” completed by the tax representative;
– the original agreement or certified copy between the parties (representative – represented);
– the decision or power of attorney appointing or appointing the tax representative, signed by the responsible person of the non-resident taxable person who appointed the tax representative pursuant to the law “On Value Added Tax”;
– certified copy with the original of the tax registration certificate of the non-resident person in his country of residence, issued no earlier than 3 months from the date of
the application for registration of the representative;
– certified copy with the original of the identity card or passport of the administrator of the non-resident company;
– certified copy with the original of the identity card or passport of the representative for registration;
– extract from the registration at the National Business Center of the natural or legal person designated as a tax representative. This document will be generated by the tax employee himself and will be part of the registration file.
The tax administration in the Personal Identification Number of Taxpayer certificate issued to tax representatives is obliged to put the word “Tax representative X for Y” before the name, where instead of X, write the name of the representative and instead of Y, write the name of the foreign company it represents

Persons who are registered as tax representatives fulfill the obligations related to keeping documentation (sales books and purchase books), declaration, invoicing, etc., like any other taxable person registered for VAT.

Persons who are registered as tax representatives fulfill the obligations related to keeping documentation on digital format (sales books and purchase books), declaration, e-invoicing, etc., like any other taxable person registered for VAT.

In the case where the taxable person receiving the supply is a taxpayer who is not registered for VAT, for example is a taxpayer subject to the small business regime or is a public institution or body that is not registered for VAT- in, or an individual, the appointment of a tax representative is required to pay VAT.

In the absence of the appointment of a tax representative, then the domestic recipient of the service is responsible for paying VAT.