International Tax Review is part of the Delinian Group, Delinian Limited, 4 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 General Court reverses its position taken four years ago, while the UN discusses tax policy in New York.
Discussion on amount B under the first part of the OECD's two-pronged approach to international tax reform is far from over, if the latest consultation is anything go by.
Pillar two might be top of mind for many multinational companies, but the huge variations between countries’ readiness means getting ahead of the game now, argues Russell Gammon, chief solutions officer at Tax Systems.
ITR’s latest quarterly PDF is going live today, leading on the looming battle between the UN and the OECD for dominance in global tax policy.
Company tax changes are central to the German government’s plan to revive the economy, but sources say they miss the mark. Ralph Cunningham reports.
The winners of the ITR Americas Tax Awards have been announced for 2023!
There is a ‘huge demand’ for tax services in the Middle East, says new Clyde & Co partner Rachel Fox in an interview with ITR.
The ECB warns the tax could leave banks with weaker capital levels, while the UAE publishes guidance on its new corporate tax regime.
Caroline Setliffe and Ben Shem-Tov of Eversheds Sutherland give an overview of the US transfer pricing penalty regime and UK diverted profits tax considerations for multinational companies.
The result follows what EY said was one of the most successful years in the firm’s history.