VAT Registration in Macedonia

The value added tax or the VAT in North Macedonia applies to most of the products and services provided in this country, in compliance with the EU directives and the applicable legislation. Macedonia imposes two types of VAT, depending on the goods and their categories.  If you would like to set up a company in Macedonia and find out information about the taxation structure in this country, please feel free to get in touch with our team of company formation agents in Macedonia.

Quick Facts
We offer VAT registration services in Macedonia	Yes
Standard rate	18%
Lower rates	– 10% for restaurant and catering services, – 5% for newspapers, food supply, agricultural material, medical equipment, – 0% in the case of exports
Who needs to register for VAT in Macedonia?	Companies with annual turnover exceeding MKD 2 million
Time frame for VAT registration in Macedonia	Around 10 days
VAT for real estate transactions	18%
Exemptions available	No VAT for: – residential property lease, – supply of banking and financial services, – lottery, – services provided by professional entities
Period for filing	By the 25th of the following month
VAT returns support	Yes
VAT refund	Under specific agreements with countries that offer VAT refund
Local tax agent required	YES, for foreign companies
Who collects the VAT	The Public Revenue Office in Macedonia
Documents for VAT registration in Macedonia	– Articles of Association, – Certificate of Incorporation, – other standard forms
VAT number format	13 digits
VAT de-registration situations	In case the company closes its activities in Macedonia
Deductible VAT	For: – equipment, – consultancy, – telecommunication, – advertising, etc.
Deadlines for VAT payments	Within 30 days after the end of each tax period
VAT groups (YES/NO)	YES
VAT registration for sole traders	Subject to the same VAT rules as any other legal entity
VAT registration for branches (YES/NO)	YES
VAT registration for liaison offices (YES/NO)	NO
VAT registration for foreign digital services	Mandatory upon offering first taxable supplies/services
Record-keeping requirements	5 years
Invoice content	– invoice number, – date of issue, – name and address of supplier and customer, – registration number of the supplier, – VAT rate and VAT base, – quantity and description of goods/services.
Voluntary VAT registration (YES/NO)	YES
Power of attorney	Our company incorporation agents can help with VAT registration through a power of attorney.
Penalties for late VAT registration	Depends on the size of the legal entity
Reverse charge mechanism	Usually used for cross-border transactions to prevent double taxation issues
Simplified invoices	Not applicable in Macedonia
Additional services provided by our team	Our team can also help interested individuals open a company in Macedonia.

What are the VAT rates in Macedonia in 2024?

The standard VAT rate in Macedonia in 2024 is set at 18% for products and services available for sale purposes in this country. A VAT rate of 5% is applicable to the following categories:

• water supply in Macedonia;
• agricultural materials, wood pellets, equipment, and pellet boilers;
• school supplies like books, pencils, pens, notebooks, and backpacks;
• newspapers, magazines, books, publications without the ones meant for advertising purposes;
• medical equipment, accommodation services (hotels and resorts), and public transportation.

The recent VAT legislation modifications mention that basic foodstuff is exempt from this kind of tax. This means that there is 0% for bread, sugar, sunflower oil, eggs, and flour, among other products.

We remind that the above-mentioned products and services are subject to a special VAT which is set at a 5% rate. If you are interested in establishing a company in North Macedonia in 2024 and you are looking for support in this direction, feel free to talk to us as soon as possible.

The VAT rate for electricity increased to 10% in 2024 and remains the same until July when it will be established at 18%. However, the VAT for certain fuels has been reduced from 18% to 10% rate.

The 10% VAT rate is applicable to catering services and the supply of food and specific beverages for immediate consumption. More about VAT and applicable legislation can be discussed with one of our local agents.

How can I register for VAT purposes?

Since January 2020, companies carrying out operations of a total turnover of MKD 2 million in Macedonia need to register for VAT purposes. It is good to know that if the business had financial activities for only a specific period of time in a year, only that period will be subject to VAT in Macedonia. The VAT registration starts at the PRO Regional Office which provides the requirements in this sense, regarding the documents and the applications which need to be submitted.

The company’s documents and the Certificate of Incorporation of the firm must be submitted to the entitled authorities when registering for VAT in Macedonia. Form DDV-01 is also needed for VAT registration in Macedonia.

Once the filled-in VAT registration form is submitted, the authorities (via the PRO Office) issue a decision that includes the VAT registration start date, the first tax period for this purpose, as well as the period that will apply for the submission of the VAT return.

Taxpayers who have registered for VAT purposes will remain registered for at least five years, irrespective of how the value of their turnover changes during this period. If you need to register for VAT purposes in 2024 (as a result of having exceeded the threshold, or before starting the business activities), you can focus on managing your business efficiently and let us deal with the bureaucracies in terms of VAT registration in this country. If you need assistance in this matter, please do not hesitate to ask us for information.

Support for micro and small companies in Macedonia

Starting with January 2020, the VAT threshold has been modified, and the rule also remains available in 2024. This means that the registration for VAT can be made by companies exceeding the MKD 2 million threshold, as mentioned by the new VAT tax scheme. This is one of the methods and measures through which the Macedonian government, particularly the Ministry of Finance, wants to attract even more entrepreneurs in the country.

The tax administration in Macedonia continues to simplify and optimize the tax collection methods and also tax returns, in order to provide a proper and enhanced business environment for small and medium entrepreneurs in the country. All the new rules related to VAT in Macedonia can be explained by one of our company formation representatives who can also provide support for company incorporation in North Macedonia.

Other tax facts in Macedonia

Besides the VAT imposed on most goods and services offered for sale in Macedonia, companies and entrepreneurs must also observe other taxes. For example, import companies are subject to import tariffs for importing agricultural products in Macedonia. Industrial products for import purposes in Macedonia are subject to customs duties. We remind you that Macedonia is part of the Stabilization and Association Agreement signed with the EU, and also part of the Central European Free Trade Agreement, and the European Free Trade Association.

The excise duties are imposed on specific goods imported into Macedonia, like tobacco products, alcoholic beverages, electricity fuels, and many more. The property tax the transfer tax, and the communal taxes are other important taxes to consider in Macedonia. On the other hand, there are also tax exemptions in Macedonia, for example, no stamp taxes are payable in this country.

Social contributions in Macedonia

Employers in Macedonia, whether local or from abroad must pay attention to the social contributions imposed on gross salary. The health insurance at a 7.5% rate, the pension and disability insurance at 18.8% rate, and the employment insurance rate of 1.2% are among the social contributions payable in Macedonia. If you are interested in starting a business in Macedonia, it is important to pay attention to the taxation regime imposed in this country. One of our consultants can provide complete support in this matter and can help foreigners open a company in Macedonia in 2024.

Deadline for VAT submission in Macedonia

All companies and taxpayers must verify the accounts and the financial records until the 15th of January of each year when they have to submit the VAT applications for their turnovers. We remind you that this rule is available only for enterprises with profits of at least MKD 2 million, as established for this year.

Who doesn’t need to pay VAT in Macedonia?

The VAT is not imposed for taxpayers with annual turnovers not exceeding MKD 2 million, as established for this year. Also, from the obligation for VAT registration, taxpayers who are not residents in Macedonia are excluded if they carry out a taxable turnover for which the tax debt is assigned to the fulfilling beneficiary. Also, non-residents in Macedonia subject to returning of previous tax in a special procedure are exempt from VAT. Feel free to address our team of company formation agents in Macedonia and find out more about the VAT registration in Macedonia.

Making investments in Macedonia

Macedonia provides a proper business climate to all international investors looking to thrive in this part of Europe. The excellent economic relations with countries worldwide are also supported by the numerous agreements and conventions signed by Macedonia, among which, are the double taxation treaties. Macedonia is quite appealing from a taxation point of view, one of the important benefits offered to foreign investors, alongside a skilled workforce and numerous developed business sectors like agriculture, tourism, manufacturing, etc.

Some of the key industries that remain attractive to foreign investors include the ICT sector, the energy and pharmaceutical sectors, agribusiness and food processing, the energy sector, textile and clothing, and more.

We invite you to contact our team of company incorporation specialists in Macedonia for additional information about the VAT registration in Macedonia and the formalities required in 2024.