International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

FYR Macedonia: FYR Macedonia introduces reverse charge mechanism for select categories of services


Elena Kostovska

A decision defining the categories of supply of goods and services for which the VAT responsible taxpayer is considered to be the entity to which the supply is being provided by another VAT-registered company was published in the Official Gazette 45/2014 and is applicable as of March 5 2014. The decision lists goods and services on which a reverse charge VAT mechanism is applied as of the aforementioned date and onwards. It also defines the appropriate steps that the involved parties need to follow in such transactions. Namely, the provider of the affected goods/services must indicate that "the VAT liability is transferred to the recipient of the goods/services according to Article 32, point 1 of the VAT Law" on the invoices issued. The provider will neither calculate VAT on the outgoing invoice, nor consider such outgoing VAT in their VAT return. The recipient of the goods/service, on the other hand, will now be obliged to calculate and pay the VAT to the Tax Office while also using their right for deduction of such input VAT.

The published list of goods and services is comprehensive and detailed, and includes, among others, the provision of services related to:

  • Construction, including maintenance, restoration and removal of buildings or parts thereof;

  • Construction of residential and non-residential buildings;

  • Construction of roads and highways;

  • Construction of railways and underground railways;

  • Construction of bridges and tunnels;

  • Construction of utility facilities for liquid storage;

  • Construction of power lines and telecommunications;

  • Construction of hydro facilities;

  • Demolition or wrecking of buildings and other facilities;

  • Preparatory works on a construction site;

  • Electrical installation work;

  • Plumbing, sewage and gas installations and heating and installation of air-conditioning devices;

  • Plastering, carpentry, flooring and paving;

  • Painting and glazing;

  • Used materials and repurposed materials, waste, industrial and non-industrial waste materials; and

  • Property in the process of forced collection by public bidding (including agricultural land, forests and pastures, buildings – residential or commercial)

It is worth noting that the reverse charge mechanism is only applicable when both the service provider and the service recipient are VAT-registered taxpayers.

Elena Kostovska (

Eurofast Global, Skopje Office

Tel: +389 2 2400225

more across site & bottom lb ros

More from across our site

The German government unveils plans to implement pillar two, while EY is reportedly still divided over ‘Project Everest’.
With the M&A market booming, ITR has partnered with correspondents from firms around the globe to provide a guide to the deal structures being employed and tax authorities' responses.
Xing Hu, partner at Hui Ye Law Firm in Shanghai, looks at the implications of the US Uyghur Forced Labor Protection Act for TP comparability analysis of China.
Karl Berlin talks to Josh White about meeting the Fair Tax standard, the changing burden of country-by-country reporting, and how windfall taxes may hit renewable energy.
Sandy Markwick, head of the Tax Director Network (TDN) at Winmark, looks at the challenges of global mobility for tax management.
Taxpayers should look beyond the headline criteria of the simplification regime to ensure that their arrangements meet the arm’s-length standard, say Alejandro Ces and Mark Seddon of the EY New Zealand transfer pricing team.
In a recent webinar hosted by law firms Greenberg Traurig and Clayton Utz, officials at the IRS and ATO outlined their visions for 2023.
The Asia-Pacific awards research cycle has now begun – don’t miss on this opportunity be recognised in 2023
An intense period of lobbying and persuasion is under way as the UN secretary-general’s report on the future of international tax cooperation begins to take shape. Ralph Cunningham reports.
Fresh details of the European Commission’s state aid case against Amazon emerge, while a pension fund is suing Amgen over its tax dispute with the Internal Revenue Service.