Accounting for Retail Shops in Albania: Invoices, Inventory and Taxes

In a shop, money moves every day: cash and card sales, supplier purchases, goods coming in and going out. Without proper retail shop accounting, turnover can look healthy while profit disappears into stock, losses or unexpected tax bills.

Keep purchase and sales invoices complete

• Every sale is fiscalised. The fiscal receipt or invoice is issued at the time of sale, card payments included.
• Every purchase has an invoice. Goods without an invoice aren’t accepted as a cost and cause problems in an audit.
• Returns and discounts are documented with a corrective invoice, not by informal agreement.
• Close the till every day and compare it with fiscalised sales and POS payments.

Count inventory regularly, not just at year end

The year-end stock count is required for the financial statements, but a shop needs more. A monthly or quarterly count of key products reveals losses, theft, expired goods or recording errors early. Stock differences should be documented in a written record, because unexplained shortages can be treated as undeclared sales.

Analyse margin by product category

Turnover doesn’t tell you whether the shop makes money. For each category, compare selling price with purchase cost, plus transport and losses. Often some high-selling products have very thin margins while smaller lines carry the profit. Use this to set prices, orders and promotions.

The main tax obligations

• VAT: from 1 January 2027 registration is mandatory above ALL 5 million of annual turnover. A shop selling around ALL 420,000 a month crosses it. Read about the new VAT threshold.
• Income tax: 0% on gross income up to ALL 14 million a year until 31 December 2029; above that, 15% for an sh.p.k.
• Payroll: monthly payroll and contributions for sales staff.
• Local taxes set by the municipality, depending on area and activity.
• Supplier payments: between businesses, cash payments above ALL 100,000 per transaction are not allowed; use the bank.

Mistakes to avoid

• Mixing till cash with personal money.
• Buying without invoices “because it’s cheaper”.
• Counting stock only in December without checking it against the books.
• Setting prices without knowing the real margin.

FAQ

How often should I send documents to my accountant?

At least monthly, before filing deadlines. For busy shops, weekly is better.

Do I need to count all stock every month?

Not necessarily. Count high-value or fast-moving products regularly, and all stock at least at year end.

Abacus for retail

We keep your books, reconcile cash and inventory and give you margin reports. See how we work with retailers or contact us.

This article is for general information and is not a substitute for professional advice on your situation. Sources: VAT Law No. 92/2014; VKM No. 822 of 28.10.2026; Income Tax Law No. 29/2023; Law No. 9920/2008 on Tax Procedures (Article 59); Law No. 87/2019 on Invoices and the Turnover Monitoring System.