The Director of Taxes responds to businesses on fiscalization issues during the Investment Council meeting

MAIN ISSUES AND CONCERNS RAISED BY BUSINESSES DURING THE OPEN DISCUSSION ON FISCALIZATION DATED 22.01.2021 AND THE RESPONSES OF THE GENERAL DIRECTORATE OF TAXES

ISSUES RAISED BY THE AMERICAN CHAMBER OF COMMERCE

– The first concern is related to allowing the use of the Self Care platform. According to the VKM, there is a relatively small number of taxpayers who can issue invoices from the Self Care portal. The VKM has limited taxpayers in a way that is not related to the use but to the status of the latter.

Let us give as an example that the taxpayer must be a natural person, while many foreign taxpayers, mainly branches of foreign companies, may have a lower level (in number of invoices) of invoicing, or even a restriction that there should be no employees, while the number of employees is not necessarily related to the number of invoices. Being aware that these restrictions were imposed by the Council of Ministers, our question is whether there is a technical possibility that this portal can be used by a larger number of taxpayers who do not have a large number of invoices.

Answer: The approach of the Tax Administration has been to relieve small businesses of costs.

We as the administration assess that for these categories of businesses, according to the criteria set out in the decision, they can use free of charge. The Self Care Portal for issuing electronic invoices, for which there will be no cost for the electronic certificate and the goal is to relieve their costs. So, the only cost for them will be the monthly internet fee, which is on average lower than the monthly cost of maintaining existing fiscal equipment.

– The second concern is related to the manuals for using the Self Care platform.

The technical part has been given importance, somewhat ignoring the functional/commercial part.

The published manuals lack at least the details of the processes or choices that taxpayers must make. Also, the terminology used on the platform is not in accordance with the legislation or practice to date (in one of the choices it is named “Country of the item” and not “country of origin” and there are cases of typos).

Answer: In fact, the manual explains the functional part from the user’s side of the platform, the way the menus are displayed, the data entry in compliance with the Fiscalization Law, and performs the role of a manual for using the functionalities contained in the Self Care platform.

The information on filling out an invoice is not addressed by the platform’s user guide, but by the laws and instructions, and specifically regarding the electronic invoice, the relevant document is published on the official tax website, the fiscalization menu, the document on which the electronic invoice is implemented is published. This document aims to facilitate the creation and automatic processing of electronic invoices according to the European Standard EN 16931-1 using the ISO / IEC 19845 (UBL 2.1) standard. It explains in detail the business processes and functionalities, invoice models for different types of business processes, etc.

The remark will be addressed and we will take measures to avoid errors in translations and adaptations of the dictionary and in the instruction leaflet for filling out the invoice.

OTHER QUESTIONS

Issuance of invoices by the tax representative for the high number of invoices for very small transactions. For these transactions, Deloitte Albania requires that a summary invoice be prepared.
Answer: It will be considered for relevant changes in the Instruction.
Issuance of corrective invoices for the period before the entry into force of the fiscalization law. Answer: the corrective invoice will be fiscalized regardless of whether it is for a transaction carried out before the fiscalization law.
Is the new platform synchronized with the platforms of EU countries?
Answer: The platform does not communicate electronically with EU countries. The suggested solution for foreign invoices to be fiscalized will be implemented.
What will be the procedure in cases of non-acceptance/rejection of the invoice.
Answer: An adjustment remains to be made in the Instruction according to technical scenarios when the invoice is rejected or not accepted.
What happens when the invoice is sent within the deadline (e.g. date 10) – will the purchase books be opened by the Purchase side?
Answer: The corrective invoice can only be made by the Seller.
Import customs declarations.
Answer: Regardless of the type of import, declarations must be fiscalized.
VAT adjustment to correct the declared VAT value By January 31 of the following year and partial VAT credit.
Answer: This scenario has been taken into consideration.
What happens when the platform does not work?
Answer: As in the case of fiscal devices – taxpayers can use the issuance of invoices from the block, which are then fiscalized.
The provisions in the VKM for the use of the limit of the Self Care platform. So the portal should be used by a small number of taxpayers on the condition that they do not have many transactions.
Answer: The Council of Ministers has taken into account the criterion of costs for the business and not the number of transactions.
Additional costs for taxpayers taking into account the visible and hidden costs.
Answer: The process carries costs, but also benefits. The costs will be determined by the market, which has already been liberalized in this regard.
Penalties that may be applied in the event of non-fiscalization of invoices due to the malfunctioning of the service.
Answer: The approach of the tax administration will not be penalization and punishment. The legal framework is complete in this regard.
Penalty measures for non-fiscalization are considered very high.
Answer: The spirit of the administration in the first phase will be in consulting and support.
Many companies that use ERP and SAP have not found software solutions for the integration of their platforms.
Answer: The specifications are public – if you need the help of the DPT or developers to integrate these programs, ask for assistance from the DPT. The certification process is open and companies can produce it themselves without having to buy it.
Cash limits beyond the daily limit, how will they be considered? Violation or not?
Answer: The current law has no limits.
In the case when the invoice is rejected by the buyer. What should the seller do?
Answer: The seller has the right to correct it.
Is Auto-invoicing supported by the system?
Answer: It is possible.
Periodic invoices have a deadline until the 10th of the following month.
Answer: Technically this is solved.
Is a budget foreseen for subsidizing the purchase of equipment?
Answer: Businesses must bear some costs, because at the same time they also have some benefits. There will be no subsidies.
Is it possible to make invoices in EURO?
Answer: The invoice can also be issued in EURO but the taxable value and VAT will be converted to Lek.