Denada Jushi
The Tax Administration's latest call a few days ago on the taxation of entities operating on online platforms has opened a new debate on the formalization of the digital economy in Albania.
Through an official announcement, the Taxes called on all individuals who have earned income from online platforms to declare it by March 31st through the DIVA 2025 system. Otherwise, penalties are warned according to the legislation in force. The focus is particularly on influencers and content creators who benefit from advertising on social networks.
According to the announcement, all income earned during the year must be declared, whether through bank accounts or any other form of payment, including electronic or physical payments from platforms such as Meta (Facebook, Instagram, WhatsApp), Google, YouTube, Airbnb or Booking. The Tax Administration emphasizes that it has data on the turnovers realized on these platforms, warning that any failure to declare will lead to fines.
The figures show the scale of the phenomenon last year, with around 33 million euros in revenue from social networks having to be declared in DIVA 2024. This shows that the online advertising and content creation market in Albania is no longer small, but an important sector in the economy.
But what exactly does the government want?
The legal basis is Law No. 29/2023 “On Income Tax”, which entered into force on 1 January 2024 and replaced the 1998 law. This law aims to unify the fiscal treatment of individuals and businesses, including digital activities. An influencer who is considered a tax resident in Albania (i.e. who lives more than 183 days a year in the country) is taxed on his worldwide income, including payments from YouTube, TikTok or collaborations with foreign brands.
An important element is the threshold of 14 million lek annual turnover. Until 2029, self-employed individuals with turnover up to this level benefit from a 0% tax on net profit. This means that after deducting expenses, no tax is paid on the profit, but social and health contributions remain mandatory.
But things changed when a significant development was the decision no. 52, dated 27.6.2024 of the Constitutional Court of Albania, which abolished the 15% tax on liberal professions that was originally provided for by law 29/2023. This decision returned self-employed influencers to the 0% scheme up to the threshold of 14 million lekë, significantly reducing the fiscal burden on the sector.
However, problems remain. One of the most complicated issues is that of payments. Many influencers receive free products, vacations, or Services in exchange for promotion. By law, any economic benefit in exchange for a service is considered taxable income and must be declared at market value. Failure to declare can be considered tax evasion.
Another delicate point is the distinction between “service” and “fee”. If the influencer creates and publishes content on his channel, it is treated as a business service. But if he grants a brand the right to use his material for a certain period, this payment can be classified as a fee and is taxed at a 15% withholding tax. Drafting contracts becomes essential to avoid misinterpretations.
On the other hand, some influencers express practical difficulties. Influencer AC*(The influencer's name has been changed for anonymity purposes.) says that she has been paying for years with NIPT when issuing invoices, but finds it difficult to standardize the market, as many collaborations are done "in the black", without contracts, or through exchanges without monetary payment. According to her, long-term contracts are more easily formalized, but sporadic collaborations are more problematic to structure fiscally.
Another element is VAT. If the annual turnover exceeds 10 million lek, there is an obligation to register for VAT and apply 20% on Services within the country. However, for Services provided to foreign clients, the principle of “export of Services” is applied, which is taxed at a 0% VAT rate. This allows Albanian influencers to compete in the international market without additional burden.
How does the European Union operate? In most EU countries, influencers are treated as self-employed or small businesses. They must register, declare their income and, if they exceed the relevant thresholds, apply VAT. An important innovation is the DAC7 directive, which obliges digital platforms to report creators' income to tax authorities. This makes it much more difficult to hide income, as tax administrations receive information directly from the platforms.
Essentially, Albania is following the same logic of formalization as the EU, transparency, reporting and taxation on profits. For the state budget, the benefit is twofold. First, revenues from a growing sector increase. Second, fiscal equality is created between those operating in a formalized manner and those who have operated outside the system.
The debate over taxing influencers is not just technical. It touches on how the state views the digital economy, whether as an informal space to be tolerated, or as a professional sector to be treated with the same rules as any other business. With 33 million euros in revenue reported in just one year, the government's message is clear: the time for tax-free "likes" is over.acqj.al
