FYR Macedonia Lower VAT registration threshold enacted; possibility of electronic invoicing introduced

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

FYR Macedonia Lower VAT registration threshold enacted; possibility of electronic invoicing introduced

kostovska.jpg

Elena Kostovska

The Law on Value Added Tax in FYR Macedonia underwent several revisions in 2014, with the most recent reform taking place in early September. Published in the Official Gazette no. 130/2014 and effective as of September 11 2014, the new Law on VAT introduces some amendments that are expected to impact a large percentage of small and medium businesses. According to the Law, as of 2015, the threshold for mandatory VAT registration is being slashed in half, from the current MKD 2 million ($40,000) in annual turnover to a mere MKD 1 million. It is expected that this change alone will make VAT registration mandatory for a large number of micro and small entities that are currently outside the VAT scheme based on lower annual turnovers. As a reminder, companies that have elected not to voluntarily register for VAT purposes before realising the turnover threshold are required to do so within 15 calendar days of the day on which the threshold turnover is reached. As the Law will be in force as of 2015, this will create an obligation for a large number of companies that will reach a turnover of MKD 1 million within the 2014 fiscal year to mandatorily register for VAT purposes in the first 15 days of 2015.

The new Law also prescribes the possibility to issue electronic invoices between companies as of March 1 2015. The revised article has received positive feedback from the business community as it seems to open up possibilities for more streamlined and technologically advanced invoicing procedures which are now being regulated by old-fashioned laws and procedures. The article does, however, specify that the company being invoiced must be given a prior written approval declaring its willingness to accept electronic invoicing as opposed to paper-based invoices. It remains to be seen how further bylaws will regulate details of the application of this amendment and whether it will truly be aimed at simplifying B2B documentation and communication or whether it will result in the creation of additional compliance obligations and procedures.

Elena Kostovska (elena.kostovska@eurofast.eu)

Eurofast Global, Skopje Office

Tel: +389 2 2400225

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Countries which care about fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
Gift this article