North Macedonia
In North Macedonia, VAT taxpayers include both legal entities and individuals, including associations of individuals, who generate income through their commercial activities.
Provinces
Goods
Provinces
Goods
Digital services
About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
VAT Standard rate
In 2024 the general VAT rate of 18% applies to most goods selling in North Macedonia.Reduced rates
Reduce rate of 5% applies to the following products:Food products for human consumption
- Drinking water sourced from public systems dedicated to urban wastewater supply and drainage, as well as water for agricultural irrigation;
- Publications;
- Seeds and planting materials for agricultural crop production;
- Fertilizers;
- Plant protection products;
- Plastic films designed for agricultural use;
- Agricultural machinery and equipment;
- Pharmaceuticals, including those for veterinary purposes;
- Computers;
- Thermal solar systems and their components;
- Medical equipment and devices, as well as assistive devices intended solely for personal use by individuals with disabilities;
- Crude oil for the production of human food;
- The initial sale of residential buildings and apartments, specifically the portions designated for residential purposes and slated for completion within five years of construction;
- Animal feed, feed additives, and live cattle;
- Baby products;
- School supplies;
- Pellets, pellet stoves, and pellet boilers;
- Heating energy;
- Household electricity.
Examples of goods taxable under the VAT at 0%
- Exports of goods and services;
- International transportation services;
- Services related to goods in transit;
- Supplies of gold to the National Bank;
- Supplies of goods and services to diplomats, consuls, and international organizations;
- Certain healthcare services.
VAT rate
VAT standard rate in North Macedonia in 2024 is 18%, which applies to digital services provided by foreign businesses to the customers in Macedonia. The reduced rate of 5% applies to e-textbooks.
VAT Standard rate
18%
VAT Reduced rate
5%, 0%
Thresholds
1,000,000 denars
Thresholds
Taxpayers that either surpassed a total turnover of 1 million denars in the previous calendar year, projected a turnover exceeding 1,000,000 denars at the start of their economic activities, or experienced turnover exceeding 1,000,000 denars during the year, are mandated to register for VAT purposes.Registration procedure
For registration it is required to fill a form Form DDV-01.The VAT registration application must be submitted according to the following deadlines:
- By the 15th of January in the current year for taxpayers who:
- Achieved a total taxable turnover exceeding 1,000,000 denars in the preceding calendar year;
- Voluntarily opt for VAT registration.
- By the 15th of the month following the month when the turnover surpasses 1,000,000 denars, for taxpayers who exceed this turnover threshold during the calendar year.
- Within 15 days of commencing their business activity for taxpayers who:
- Initiate their economic activities during the calendar year;
- Transition from a previously tax-exempt business activity without the right to deduct previous tax to a taxable activity.
VAT filing and payment date
The due date for filing monthly and quarterly tax returns is 25 days following the conclusion of the respective tax period. Companies who, during a specific tax period, did not engage in any taxable transactions, must still submit a tax return with all fields completed as “0” (zero). The deadlines for VAT payments align with the deadlines set for tax return submissions.Penalties
The penalty for non-filing or late filing of VAT returns in North Macedonia could vary depending on the specific circumstances and the amount of tax owed. Penalties for non-compliance with VAT regulations are subject to change and can be influenced by various factors, including the amount of unpaid tax, the frequency of non-compliance, and the policies in place at the time of the violation.VAT registration threshold
Taxpayers that either surpassed a total turnover of MKD 1,000,000 in the previous calendar year, projected a turnover exceeding MKD 1,000,000 (approx. EUR 16,000) at the start of their economic activities, or experienced turnover exceeding MKD 1,000,000 during the year, are mandated to register for VAT purposes. VAT registration for non-resident businesses which do not have a permanent establishment in North Macedonia in not mandatory. In such case reverse-charge mechanism will be applied.Pieces of evidence
VAT is payable at the place of supply. The territory of Macedonia is deemed to be the single place of supply of services. The time of supply in Macedonia is the the moment the price is paid (in whole or in part), or when transaction is registered by the service provider. The place of supply of digital services provided to a person who is not a taxpayer shall be deemed to be the place where the service user has a real location, permanent place of residence.E-services list
- web page development, web hosting, remote maintenance of programs and equipment;
- software and its updating;
- images, text and information, as well as the provision of databases;
- music, movies and games, including gambling, as well as political, cultural, artistic, sports, scientific and entertainment programs and events, and
- distance learning.
Registration procedure
Businesses must apply for VAT registration in Macedonia via submitting the Form DDV-01 to the tax authority or via website by e-tax services. The application for VAT registration must be submitted by January 15 of the current year by taxpayers who had a turnover exceeding threshold in the previous calendar year or those who voluntarily entered into VAT registration. For individuals surpassing the annual turnover threshold during the year, it must be submitted by the 15th day of the month following the one in which the turnover exceeds MKD 1,000,000.VAT returns filing and payment date
The VAT returns in Macedonia must be submitted electronically on monthly or quarterly basis. The deadline for filing and payment is the 25th day of the month following the reporting period.
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