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 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 & bottom lb ros

More from across our site

Developments included the end of Saudi Arabia’s tax amnesty, Poland’s VAT battle with the EU, the Indirect Tax Forum, India’s WTO complaint, and more.
Charlotte Sallabank and Christy Wilson of Katten UK look at the Premier League's use of 'dual representation' contracts for tax matters.
Shareholders are set to vote on whether the asset management firm will adopt public CbCR, amid claims of tax avoidance.
US lawmakers averted a default on debt by approving the Fiscal Responsibility Act, but this deal may consolidate the Biden tax reforms rather than undermine them.
In a letter to the Australian Senate, the firm has provided the names of all 67 staff who received confidential emails but has not released them publicly.
David Pickstone and Anastasia Nourescu of Stewarts review the facts and implications of Ørsted’s appeal at the Upper Tribunal.
The Internal Revenue Service will lose the funding as part of the US debt limit deal, while Amazon UK reaps the benefits of the 130% ‘super-deduction’.
The European Commission wanted to make an example of US companies like Apple, but its crusade against ‘sweetheart’ tax rulings may be derailed at the CJEU.
The OECD has announced that a TP training programme is about to conclude in West Africa, a region that has been plagued by mispricing activities for a number of years.
Richard Murphy and Andrew Baker make the case for tax transparency as a public good and how key principles should lead to a better tax system.