Digitalization of the Economy: Challenges and Achievements of Fiscalization Implementation in Albania

The fiscal system implemented during the last decade (2009–2020) in Albania has resulted far from the expectations and standards used by EU members and has been the subject of frequent discussions. The necessary reform of the system according to the new fiscalization platform (2021), reports financial data in real–time and can contribute to the formalization of the economy by increasing transparency in the business environment and FDI–s, etc. The objective of the paper is to analyze the process and identify the challenges and achievements so far of the fiscalization reform in the Albanian economy. The analysis of the general data results that the new fiscalization platform offers a better adaptation to economic processes. The new digitalized system is based on the use of software, it is advanced and relatively easy to implement. While the concerns of small businesses facing some additional initial costs have not been considered, more support is needed for financial administration (taxes and businesses) on new tax practices, especially in rural areas.