Tax representative in Albania

Law No. 9920, dated 19.5.2008 “On Tax Procedures in the Republic of Albania” as amended and Instruction No. 24, dated 02.09.2008 “On Tax Procedures in the Republic of Albania”, as amended, is the legal basis that determines the rules for exercising activity as a Tax Representative in the Republic of Albania.

The resident tax representative can be an individual, a commercial natural person or a legal entity. The person appointed as a tax representative has the right to act on behalf of his principal (the non-resident person) for all purposes related to taxes.

He is simultaneously responsible for fulfilling all the obligations of the non-resident taxpayer that he represents.

The tax representative must request to be registered with the regional tax directorate, in the Taxpayer Service Directorate, Registration Sector.

The documents that must be submitted for the registration of the tax representative are:

1. Decision or power of attorney appointing the Tax Representative
2. A certified copy of the agency agreement

iii. A certified copy of the tax registration certificate of the non-resident in his country of residence certifying that the non-resident is an active person, issued no later than 3 months from the date of application for registration.

The tax representative must be registered with his name and in the name of his tax representative within 5 (five) days after the appointment as such and before the beginning of the legal obligation of this person in Albania. For any changes made or to be made, in relation to the initial data received by the tax representative, the regional directorate must be notified in writing within 5 days.

Who are the modalities of the tax representative?

The representation agreement must clearly specify all the activities that can be performed by the tax representative. At least, he must be authorized:

– To complete invoices on behalf of the person he represents, to accept invoices for transactions for which he is authorized;

– To submit VAT declarations in Albania on behalf of the person he represents, as well as other tax declarations when they are required by the tax legislation in force in the Republic of Albania;

– To pay tax obligations and receive tax refunds, if any, on behalf of the non-resident person he represents;

– To keep records of transactions and make them available at the request of the tax administration;

– To act in the name and on behalf of the non-resident person and represent him in the possible controls of the tax administration;

– To meet all obligations related to VAT in imports, exports and customs duties, if any.

Deregistration of the Tax Representative

After fulfilling the tax obligations, as provided for in the representation agreement, the representative must notify in writing the regional tax directorate where he is registered, that he will not

act as a tax representative.

The notice must be given at least 15 days before it ceases to act as such.

The tax representative must at the same time notify the person who appointed him.

He is not released from his personal responsibility due to ceasing to act as a tax representative of a non-resident person, and the deregistration is carried out after the tax audit, which certifies the entire period of representation.