Tax Mistakes Freelancers Make in Albania (and How to Avoid Them)

Freelancing in Albania gives you freedom, but it also gives you full responsibility for your taxes. The Drejtoria e Përgjithshme e Tatimeve (General Directorate of Taxation) (DPT) expects freelancers to manage their own TVSH and income tax — and mistakes can be costly.

Here are the most common tax errors Albanian freelancers make and how to avoid them.

1. Not Registering for TVSH on Time

Once your taxable turnover exceeds ALL 10,000,000 (~€85,000) annual turnover, you must register for TVSH. Delaying registration means you owe TVSH from the date you should have registered, plus penalties.

Once your taxable turnover exceeds ALL 10,000,000 (~€85,000) annual turnover, you must register for TVSH. Delaying registration means you owe TVSH from the date you should have registered, plus penalties.

Fix: Track your rolling turnover and register before you hit the threshold. Read our TVSH registration guide →

2. Not Setting Money Aside for Tax

Unlike employees, freelancers don't have tax deducted at source. Many Albanian freelancers spend their gross income and face a painful bill at tax time.

Unlike employees, freelancers don't have tax deducted at source. Many Albanian freelancers spend their gross income and face a painful bill at tax time.

Fix: Transfer 25–30% of every payment to a separate tax savings account immediately.

3. Missing Legitimate Deductions

Many freelancers in Albania leave money on the table by not claiming all allowable deductions.

Many freelancers in Albania leave money on the table by not claiming all allowable deductions. Common missed deductions include:

• Home office costs (proportional rent, utilities, internet)
• Professional development and training
• Software subscriptions and tools
• Travel for business purposes
• Professional insurance
• Accounting and legal fees

Fix: Use expense tracking software to capture every business expense as it happens.

4. Mixing Personal and Business Finances

Using one bank account for everything makes it nearly impossible to accurately calculate business income and expenses. DPT may question deductions you can't clearly separate from personal spending.

Using one bank account for everything makes it nearly impossible to accurately calculate business income and expenses. DPT may question deductions you can't clearly separate from personal spending.

Fix: Open a dedicated business account and route all business income and expenses through it.

5. Poor Record Keeping

DPT requires records to be kept for 5 years. Lost receipts and incomplete records lead to disallowed deductions during audits.

DPT requires records to be kept for 5 years. Lost receipts and incomplete records lead to disallowed deductions during audits.

Fix: Go digital. Scan receipts immediately and use invoicing software that stores everything securely.

6. Filing Returns Late

Filing deadlines aren't optional. In Albania, TVSH returns are due monthly for TVSH, annual for profit tax.

Filing deadlines aren't optional. In Albania, TVSH returns are due monthly for TVSH, annual for profit tax. Missing deadlines triggers automatic penalties.

Fix: Set calendar reminders or use software that alerts you before deadlines.

7. Not Issuing Compliant Invoices

Invoices missing required elements (like your NUIS) can be rejected by DPT during audits, and your clients lose the ability to claim input TVSH.

Invoices missing required elements (like your NUIS) can be rejected by DPT during audits, and your clients lose the ability to claim input TVSH.

Fix: Use compliant invoice templates that include all DPT-required fields automatically.

Stay Compliant with Invoicemonk

Invoicemonk helps Albanian freelancers avoid all seven mistakes — with automatic TVSH calculations, expense tracking, compliant invoicing, and filing reminders.

Invoicemonk helps Albanian freelancers avoid all seven mistakes — with automatic TVSH calculations, expense tracking, compliant invoicing, and filing reminders. Get started →