VAT Registration in Macedonia

The value added tax (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, find below the key aspects offered by 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 2025?

The standard VAT rate in Macedonia in 2025 is set at 18% for products and services available for sale purposes in this country. A reduced VAT rate of 5% is applicable to the following categories:

• water supply;
• 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% VAT for: bread, sugar, sunflower oil, eggs, and flour, among other products.

The VAT rate in for electricity increased to 10% in 2024. This transition is still relevant for 2025, as the VAT rate for electricity has been confirmed to revert to 18% after the temporary 10% rate was implemented to ease financial pressures on households.

The 10% VAT rate in Macedonia 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 company formation agents.

How can I register for VAT purposes?

Since January 2020, companies carrying out operations which are exceeding 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 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.

Tax payers in Macedonia 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 2025 (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 our local agents.

Foreign companies operating in Macedonia should be aware that, in addition to VAT registration, they may need to appoint a local tax agent for filing VAT returns unless they have a permanent establishment (PE) in Macedonia.

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 2025. 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 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 levies 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.

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 turnovers of at least MKD 2 million, as established for this year.

In 2025, electronic filing for VAT returns continues to be mandatory, and businesses should be aware that VAT returns can also be submitted digitally through the Public Revenue Office (PRO) portal.

Who doesn’t need to pay VAT in Macedonia?

The VAT is not imposed for tax payers with annual turnovers not exceeding MKD 2 million, as established for 2025. 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. 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.

Taxation in special economic zones for foreign investors in Macedonia

One of the most attractive features of the Macedonian tax system for foreign investors is the establishment of special economic zones (SEZs). These zones provide significant incentives, including tax holidays, reduced VAT rates, and exemptions from customs duties on imported goods. Foreign investors in Macedonia can benefit from a range of opportunities, particularly when it comes to VAT and the country’s overall taxation framework. The government has designed its tax system to attract international businesses, offering various tax incentives and reductions in VAT for specific industries.

Benefit from the support offered by our specialized company formation agents in Macedonia in order to have a better understanding about the VAT registration and other business aspects in this country, such as starting a company in Macedonia.

VAT refunds for foreign visitors in Macedonia

An important aspect of VAT in Macedonia that could be relevant for international visitors is the ability to claim VAT refunds on purchases made in the country. This system, which is common in many countries with VAT, allows non-resident to claim back VAT on eligible goods purchased during their visit. The refund process requires travelers to submit appropriate documentation at the airport or border crossing. For businesses in the retail sector, offering VAT refund services can enhance the experience of foreign customers and contribute to greater sales. The general documents required are as follows:

• Tax invoices: Original invoices for goods purchased in Macedonia that include VAT;
• VAT refund form: A completed VAT refund application form, which can be obtained from the Public Revenue Office;
• Passport: proof that the claimant is a non-resident and eligible for the VAT refund;
• Proof of export: Evidence that the goods purchased have been exported out of Macedonia;
• Departure proof: boarding pass or flying ticket.

Macedonia tax revenue data

Macedonia’s tax revenue is a key indicator of the country’s economic performance, as official data mentions:

• In January 2025, Macedonia’s tax revenue stood at 220.663 million USD, marking a decrease from the 267.650 million USD reported in December 2024;
• The highest recorded tax revenue was 310.837 million USD in July 2024, while the lowest was 66.014 million USD in February 2006.

If you are interested in establishing a company in North Macedonia in 2025 and you are looking for support in this direction, feel free to talk to us as soon as possible.

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 2025.