A foreign invoice is the start of the payment file, not the whole file. Before authorising the transfer, clarify what you bought, who receives the income and what tax checks apply. A software subscription, consulting service and goods shipment need different supporting information.
Separate the commercial and tax checks
Commercially, check the supplier, contract, amount, currency, due date and bank details. Confirm unexpected bank-detail changes through a trusted contact before paying.
For the tax review, identify the income category and the supplier's country of tax residence. The DPT double-taxation guidance describes the procedure and documentation for applying relevant treaty provisions. A foreign address on an invoice is not a residency certificate, and a treaty does not automatically remove withholding from every payment.
Review the foreign-supplier file
Choose the payment type. A complete file is a starting point for review, not a withholding-tax exemption.
Clarify what was supplied and where. Do this before assuming any treaty rate.
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This only tracks your checklist, not approval or legal compliance.
Read all categories
Services or subscriptions
Clarify what was supplied and where. Do this before assuming any treaty rate.
- Supplier identity, country and contract
- Invoice and description of the actual service
- Place of work and any personnel present in Albania
- Tax-residency evidence for the relevant year, if treaty relief is claimed
- Accountant’s review of withholding, VAT and any treaty procedure
- Payment authorisation and subsequent bank evidence
Goods
Keep the purchase, delivery and customs evidence together. Ask separately about any service included in the invoice.
- Order or contract and commercial invoice
- Transport and customs documents, where applicable
- Separate identification of services, licences or royalties
- Approved bank details and payment reference
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Official source: Albanian tax authorityBuild the file in two stages
Before payment: gather the contract, invoice, description of the work or goods and any residency evidence needed for the tax review. Ask the accountant to confirm the treatment and any required declaration or treaty procedure. Cross-border services may also raise VAT questions separate from withholding.
After payment: add the bank confirmation and connect it to the invoice. Where a treaty notification requires payment evidence, use the accepted evidence for that procedure. Keep a record of the treatment applied and the year it concerns.
Illustrative example: a supplier invoices EUR 1,000 for access to software. The description alone may not establish whether the arrangement is a standard subscription, a licence with particular rights, or another service. Send the agreement, rather than asking the accountant to decide from the bank transfer description.
Keep settlement differences visible
If bank charges, exchange rates or a partial payment mean the supplier receives a different amount, record the reason. Do not change the original invoice simply to make it equal the bank statement. Any genuine correction needs the appropriate supporting document.
Should I automatically deduct 15% from every foreign invoice?
No. The payment category, applicable law and any available treaty treatment need review. This checklist does not select a tax rate.
Does treaty relief also settle VAT?
No. Review the VAT treatment separately, including the nature and place of supply where relevant.
What if the residency certificate is missing?
Flag it before payment and ask which treatment and procedure apply. Do not assume a document for another year resolves the current payment.
See tax residency certificates and monthly accounting support.
Official sources and period
Sources consulted on 27 October 2026. Practical checklists and examples are prepared by Pivot; they are not official forms. Check the relevant period and rules before applying this to your circumstances.
