Albania's tax administration has launched a sectoral plan targeting online trade and services as part of efforts to improve tax compliance and curb the informal economy, it said in a press release.

Albania has been working to broaden its tax base and improve revenue collection as its economy becomes increasingly digitalised. Online businesses can be more difficult for authorities to monitor than traditional retailers because transactions may take place through social media platforms and other digital channels.

The plan aims to ensure that businesses operating online are properly registered and declare their turnover accurately, while meeting obligations related to value-added tax (VAT), employee salaries and electronic invoicing.

Albania's e-commerce sector has expanded significantly in recent years, prompting the tax administration to introduce a dedicated framework for identifying and addressing tax risks, it said.

Authorities will use risk analysis and data exchanges with other institutions and market operators to identify high-risk taxpayers and coordinate enforcement measures, while also seeking to encourage voluntary compliance.

The initiative is part of Albania's Medium-Term Revenue Strategy for 2024-2027 and the Tax Administration's Strategic Plan for 2024-2028.

The tax office said the measures were intended to create equal competitive conditions between online businesses and other economic operators and increase budget revenues.

"The Tax Administration aims to support the development of a transparent and formalised online market, guaranteeing equal treatment for all economic operators," it said.

The authority called on businesses engaged in online trade and services to comply with existing tax legislation, saying formalisation would contribute to a more transparent market and help reduce the informal economy.

The new plan will focus on registration, turnover reporting, VAT, employment declarations and electronic invoicing as key areas of compliance.