FYR Macedonia: FYR Macedonia abolishes the calendar year as a VAT period; aims to decrease VAT registration threshold

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FYR Macedonia: FYR Macedonia abolishes the calendar year as a VAT period; aims to decrease VAT registration threshold

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Elena Kostovska

Until July 1 2014, the FYR Macedonian tax system recognised three types of VAT taxpayers depending on the VAT period applicable to them. Based on the annual turnover of taxpayers, the tax authority used to classify companies as either monthly, quarterly or annual taxpayers. As of July 2014, the calendar year as a VAT period is abolished and all annual taxpayers are now considered as quarterly taxpayers. In light of the above change, companies that are transformed from annual to quarterly VAT taxpayers are now obliged to submit quarterly VAT returns starting from the third quarter of 2014 (the return for which is due October 25 2014). For the first six months of 2014, these companies were liable for submission of a combined return for the first two quarters of 2014 (effectively for the period January 1 to June 30), due by July 25 2014.

Additionally, a number of other amendments to the VAT law are currently in parliamentary proceedings. Among the myriad proposed changes to the VAT system the most notable is the suggested reduction of the VAT mandatory registration threshold from MKD 2 million ($44,000) in annual turnover to MKD 1 million. This decrease in the VAT registration threshold is expected to be applicable as of 2015 and to impact thousands of companies in the small business sector.

Elena Kostovska (elena.kostovska@eurofast.eu)

Eurofast Global, Skopje Office

Tel: +389 2 2400225

Website: www.eurofast.eu

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