VAT in Macedonia: Complete Guide for 2026

VAT rates in Macedonia

Macedonia has two VAT rates. The standard rate of 18% applies to most goods and services, including electronics, clothing, professional services, hospitality, and transportation. The reduced rate of 5% applies to basic food products (bread, milk, butter), medicines and medical devices, books and textbooks, water supply, and software and IT services (since 2024). The zero rate (0%) applies to exports of goods and services outside Macedonia, as well as international transport.

Who must register for VAT?

VAT registration is mandatory for all legal entities and sole traders whose total turnover in the previous 12 months exceeds 8,000,000 MKD (approximately EUR 130,000). Voluntary registration is also possible below this threshold, which can be beneficial if you have significant VAT-bearing expenses (for example, purchasing equipment or raw materials).

• Mandatory registration — Turnover exceeding 8,000,000 MKD in the last 12 months.
• Voluntary registration — Available to any taxpayer, with no minimum threshold.
• Registration deadline — No later than 15 days after the month the threshold was exceeded.
• VAT number — After registration, you receive a unique VAT identification number (MK + 13 digits).
• Deregistration — Possible if turnover falls below 8,000,000 MKD for two consecutive years.

Filing periods and deadlines

VAT returns are submitted to UJP electronically through the e-Tax system. The filing period depends on the company's annual turnover.

• Monthly filing — For companies with annual turnover above 25,000,000 MKD. Deadline: 25th of the following month.
• Quarterly filing — For companies with annual turnover below 25,000,000 MKD. Deadline: 25th of the month after the quarter ends.
• Electronic submission — All VAT returns must be submitted electronically via e-Tax.
• Payment — The VAT liability must be paid by the same deadline as the return submission.
• VAT refund — If input VAT exceeds output VAT, you can request a refund or carry it forward to the next period.

Input and output VAT

Understanding the difference between input and output VAT is fundamental to correctly calculating your VAT liability. Output VAT is the tax you charge your customers when selling goods or services. You collect this amount from customers and pay it to UJP. Input VAT is the tax you pay to your suppliers when purchasing goods or services for your business. You deduct this amount from your VAT liability. Your VAT liability = Output VAT minus Input VAT. If the result is positive, you pay VAT to UJP. If negative, you request a refund or carry it forward to the next period. Facturino automatically calculates input and output VAT and generates a report ready for your UJP submission.

Exemptions and penalties

Certain activities are exempt from VAT, while non-compliance carries serious penalties.

• Financial services — Banking, insurance, and securities trading are VAT-exempt.
• Healthcare services — Medical treatments and hospital services are exempt.
• Education — Services of public and private educational institutions.
• Penalty for late filing — EUR 500 to EUR 5,000 for legal entities.
• Penalty for non-payment — Interest of 0.03% per day on the unpaid amount.
• Penalty for non-registration — Up to EUR 10,000 for conducting business without VAT registration.