VAT in North Macedonia – A Guide for Businesses

Whether you are considering starting a business in North Macedonia or are already operating there, understanding the VAT system is essential for financial compliance. VAT applies to the turnover of goods, services and the import of goods, and affects businesses at every stage of the supply chain. This page is part of our practice in business and corporate law. For foreign entities that need to appoint a VAT representative, see our dedicated guide on the VAT tax representative in North Macedonia.

Unpacking VAT in North Macedonia

Value Added Tax, commonly known as VAT, is a significant component of taxation in North Macedonia. It applies to the turnover of goods, services, and the import of goods. VAT is a consumption tax that affects every stage of the supply chain.

Calculating VAT Rates

In North Macedonia, VAT is calculated using proportional tax rates applied to the tax base, which includes the total compensation received or to be received for transactions where VAT is not already included.

The general VAT rate is set at 18%, but there are preferential rates of 5% and 10% for specific goods and services.

VAT Exemptions and Exceptions

North Macedonia’s VAT law outlines a list of tax exemptions, meaning that the turnover of certain goods and services is not subject to VAT. Understanding these exemptions is crucial for proper financial planning and compliance.

VAT Registration Requirements

If you are running a business in North Macedonia, it is essential to know when VAT registration becomes mandatory. Generally, businesses with a total turnover exceeding 2,000,000 denars in the past calendar year, or those predicted to surpass this amount, are obligated to register for VAT. Businesses should submit their VAT registration report no later than 15 January of the current year.

If you start your business during the calendar year, the application must be submitted within 15 days from the commencement of operations. Additionally, if your total turnover exceeds 2,000,000 denars during the year, you must submit the report by the 15th of the following month.

Simplifying VAT for Your North Macedonia Business

Navigating the VAT system in North Macedonia may seem complex, but it is an essential part of doing business. To ensure compliance and efficient financial management, consider seeking professional guidance or utilizing software solutions that can simplify VAT calculations and reporting.

Understanding VAT in North Macedonia is vital for the successful operation of your business. With the right knowledge and compliance, you can focus on growing your business and contributing to the dynamic market in North Macedonia.

Learn more about the tax system in North Macedonia at the Public Revenue Office.

2026 Practical Checklist

For businesses operating or planning to operate in North Macedonia, verify the following VAT obligations: (1) Check your registration threshold — if your total turnover exceeded 2,000,000 MKD (approx. EUR 32,000) in the previous calendar year, VAT registration is mandatory. Submit by 15 January. (2) New businesses: register within 15 days — if you start operations during the year, you must submit your VAT registration application within 15 days of commencing activities. (3) Mid-year threshold breach: register by 15th of following month — if you exceed the 2,000,000 MKD threshold during the year, report it by the 15th of the month after the threshold is crossed. (4) Know your applicable rate — standard rate is 18%. Preferential rates of 5% and 10% apply to specific goods and services. Check which rate applies to your products or services. (5) Foreign entities: appoint a VAT representative — if you are a foreign entity without a permanent establishment in North Macedonia, you must appoint a VAT tax representative before commencing taxable activities.

Frequently Asked Questions

What is the VAT rate in North Macedonia?

The standard VAT rate is 18%. Preferential rates of 5% and 10% apply to specific categories of goods and services as defined in the VAT Law.

When must a business register for VAT in North Macedonia?

Registration is mandatory if your total turnover exceeded 2,000,000 MKD in the previous calendar year (submit by 15 January), or if you expect to exceed it (submit before exceeding). New businesses must register within 15 days of commencing operations. If the threshold is crossed mid-year, report by the 15th of the following month.

Are there VAT exemptions in North Macedonia?

Yes. The VAT Law provides a list of exempt goods and services. Common exemptions include certain healthcare, educational and financial services. It is important to verify whether your specific goods or services qualify for an exemption, as incorrect classification can result in penalties.

Do foreign businesses without a local office need to register for VAT?

Yes. Foreign entities conducting taxable transactions in North Macedonia without a permanent establishment or branch must register for VAT and appoint a VAT tax representative. There is no minimum turnover threshold for foreign entities — the obligation applies from the first taxable transaction.

What is the 2,000,000 MKD threshold in euros?

At the current exchange rate, 2,000,000 MKD is approximately EUR 32,000. This is the annual turnover threshold above which VAT registration becomes mandatory for domestic businesses.

Need legal guidance?

If you have questions about VAT obligations for your business in North Macedonia, the team at Lalicic & Partners is at your disposal. Contact us through our website.