What you need to know if you sell services outside Albania?

In Albania, when you sell a service, your invoice may or may not include VAT (Value Added Tax). It depends on who your client is and where they are located.

When VAT is NOT charged (0% VAT)

• If you sell services to a foreign company (outside Albania), you do not charge VAT on your invoice.
• This is called a “service export.”
• Examples: design, programming, translation, advertising, etc., provided to a business in Germany, the US, or elsewhere.
• Your invoice should state:
  “Service provided to a foreign client – VAT 0%”

When VAT MUST be charged (20% VAT)

• If you sell a service to an individual outside Albania (not a business), then VAT applies.
• The law says that for individual clients, the place of supply is where the provider is located, i.e., in Albania → VAT 20%.

What documents are needed to prove it’s a service export?

• VAT-free invoice with the correct description
• Proof that the client is a foreign business (e.g., tax ID, business registration)
• Payment received from abroad (bank transfer, PayPal, etc.)
• Contract or written communication showing the service agreement

Simplified rule to remember

Your Client	Location	VAT?
Business	Outside Albania	❌ No – 0% VAT
Individual (non-business)	Outside Albania	✅ Yes – 20% VAT
Any Client	Inside Albania	✅ Yes – 20% VAT

If you’re a freelancer or provide digital services to companies abroad, you are considered part of the “export of services” and should not charge VAT, but you must keep the proper documentation to support this.