Accountant for National and International Transport

A transport company does not just need an accountant who records invoices. It needs an outsourced accountant who understands fleet costs, the VAT specifics of international transport, driver management and the sector's legal requirements.

Accounting for transport companies includes:

• •Recording every transaction — transport invoices, fuel costs, vehicle maintenance, customs duties, all documented through the fiscalization system.
• •Fleet management — depreciation of trucks and vehicles, operating costs and insurance.
• •VAT management — international transport carries a 0% rate (service export), while domestic transport carries 20%.
• •Monthly tax declarations — VAT, profit tax, contributions and vehicle taxes.
• •Driver payroll — base salary, per-diem allowances, overtime bonuses, social contributions.
• •Annual balance sheet and financial statements — closing the fiscal year with fleet valuation.

A specialized transport accountant becomes your financial partner. If you are opening a new transport company, start with LLC formation or sole proprietorship registration, then secure the required licences.

VAT for transport follows different rules depending on the type of service and destination:

Domestic freight transport — 20% VAT: Transport services within Albanian territory are taxed at the standard rate of 20%. This includes freight transport between Albanian cities, local distribution and courier services.

International transport — 0% VAT: Freight transport with a destination outside Albania is treated as a service export and carries a 0% rate. The company must accurately document the international itinerary with CMR, customs invoices and other supporting documents.

Deductible VAT: A transport company has the right to deduct VAT paid on: fuel, vehicle maintenance, tyres, spare parts, insurance, tolls and other operating expenses.

Passenger transport: Domestic passenger transport (bus, taxi, ride-sharing) carries the 20% rate. International passenger transport has specific treatment under bilateral agreements.

Common VAT mistakes in transport: - Applying the 20% rate instead of 0% for international transport. - Failing to properly document the itinerary to justify the 0% rate. - Not deducting VAT on fuel and maintenance. - Invoices without fiscalization from fuel suppliers. - Incorrect treatment of international tolls.

The accountant for a transport company must be well versed in domestic and international VAT legislation.

Payroll for transport companies has unique elements:

Base salary and per-diem allowances: International transport drivers receive daily per-diem allowances for each day spent abroad. Per-diem allowances have specific tax treatment — up to a certain threshold they are exempt from tax, above that threshold they are taxed as income.

Overtime and night work: Drivers often work overtime and at night. The Labour Code prescribes supplements on top of the base salary for work outside normal hours. Accurate calculation requires recording working hours via tachograph or GPS system.

Driver registration: Every driver must be registered with the tax authorities before starting work. The employment contract must specify the special conditions of transport work.

Contributions: For each driver the following are calculated: - Social insurance — employer and employee contributions. - Health insurance. - Employment income tax.

International drivers: If you have drivers working on international routes, there are additional requirements: - Certificate of Professional Competence (CPC). - Periodic medical examinations. - Documentation under European regulations (for transport to the EU).

Foreign employees: If you employ foreign drivers, work permits and residence permits are needed. For EU citizens, a D visa and specific documentation may also be required.

The annual balance sheet for transport companies has specific elements:

Fleet valuation: At year-end, every vehicle is valued at its net book value (purchase price minus accumulated depreciation). If the market value is significantly lower, additional impairment may be needed.

Fixed assets: Besides vehicles, the company may have: garages, warehouses, loading equipment, GPS systems. All are recorded as fixed assets with the corresponding depreciation.

Inventory: Stock of tyres, spare parts and consumables is physically counted at year-end.

Financial statements include: - Balance sheet — assets (fleet, equipment, cash), liabilities (leasing, payables to suppliers, loans) and equity. - Income statement — transport revenue, operating costs, depreciation, profit/loss. - Cash flow statement — operating, investing (vehicle purchases) and financing cash flows. - Explanatory notes.

Deadline: The annual balance sheet is submitted to the QKB by 31 March. The profit tax declaration is submitted to the tax authorities by the same deadline.

Your accountant prepares all documents — just as for trade businesses or construction companies.

Based on our experience with transport companies in Tirana, Durres and across Albania, these are the most frequent mistakes:

1. Incorrect VAT treatment for international transport Companies that apply the 20% rate instead of 0% for international transport services, paying unnecessary VAT.

2. Not tracking costs per vehicle Without individual tracking, it is impossible to know which vehicle is profitable and which is generating losses from high fuel or maintenance costs.

3. Inaccurate depreciation Errors in calculating vehicle depreciation, affecting the annual balance sheet and profit tax.

4. Undocumented driver per-diem allowances Paying per-diem allowances without travel documentation (waybill, tachograph, CMR) creates problems during inspections.

5. Unregistered employees Drivers working without official registration — fines of up to 500,000 lek per case.

6. Incomplete customs documentation Missing CMRs, customs invoices or other documents for international transport.

7. Failure to specify currency Income in EUR or USD recorded without conversion to lek, leading to inaccuracies in tax declarations.

An experienced transport accountant prevents these mistakes. If you are starting out, make sure LLC formation and licences are in order.

Based on our work with transport companies, the most requested services are:

• •Full monthly bookkeeping — transaction recording, cost tracking per vehicle, reporting.
• •Monthly tax declarations — VAT (domestic and international), profit tax, contributions.
• •Payroll and driver registration — salaries, per-diem allowances, overtime, contributions.
• •Annual balance sheet closing — financial statements, fleet valuation, annual declaration.
• •Fleet management — depreciation, operating costs per vehicle, replacement planning.
• •Fiscalization — software configuration and staff training.
• •Business formation — QKB registration, LLC formation, transport licences.
• •International tax advisory — 0% VAT, customs documentation, tax agreements.

Every transport company has specific needs. We also offer similar services for trade businesses, restaurants, IT companies and manufacturing businesses. Our accountant offers a free initial consultation.