The Covid-19 pandemic seems to have transformed online shopping from a minority choice into a daily consumption habit for a significant part of the population. By 2024, around 43% of online purchases will be made by individuals aged 16 to 74. Compared to the period before the Covid-19 pandemic, online purchases have increased by around 33%. Clothing, shoes, accessories, followed by food to order are the typologies where sales are massively carried out via social networking sites.
In total, there are 2,016 businesses registered for online trade and services in the country, 68% of which are located in Tirana. 76% of these businesses operate as individuals and 23% are entities. Data on the online trade and services sector was published in the Operational Plan for the sector by the General Directorate of Taxes.
Despite the expansion of the sector and the increase in online sales, this sector continues to have high informality. Taxes also announced action to control this sector as has been done with other sectors before.
The Operational Plan highlights that there are four main typologies of online sales, including social networks, advertising through portals, call centers that contact consumers, and postal operators. In addition, the tax administration has also identified the risks for each typology.
- Online Sales of Goods Channels: E-commerce with cart, Instagram/Facebook (order by message), mobile apps. Risk: Thousands of followers and daily activity, but unregistered or with symbolic declared turnover.
- Online Advertising Portals: Sales announcements against payment (property, vehicles). Social networks: Paid posts/stories from pages with a large audience. Risk: Economic activity that is almost never accompanied by regular billing.
- Telemarketing Model: Call centers contact consumers to sell products, combined with advertising on social networks. Risk: Telemarketing with courier delivery against payment on delivery, concealment of turnover.
- Postal Operators/Courier Role: Delivery and cash on delivery. Distribution brokerage services. Duality: Plan object (for fiscal obligations) and data partner (delivery records enable the reconstruction of sales volume).
The 5 main risks of the online sector
1. Registration of taxpayers/sellers on Instagram and Facebook without NIPT. EU/DAC7: digital platforms report the identity and income of sellers.
2. Incorrect turnover declaration
Under-declaration of sales, especially when payment is made on delivery (cash on delivery). CESOP: creates opportunities for analyzing cross-border payments, including the threshold of over 25 payments per quarter to a beneficiary.
- Undeclared employees
Disguised employment on platforms. ILO/OECD: crucial regulation.
4. Undeclared or underdeclared wages
The risk of off-payroll payments, including the practice of "salary in an envelope".
- Avoiding VAT registration
VAT avoidance by hiding turnover. British model: single entity./ Monitor
