Advance Payment — VAT treatment and invoicing
An advance payment is a partial or full payment before service delivery or goods dispatch. In North Macedonia, receiving an advance creates a VAT obligation.
Definition
An advance payment is a partial or full payment before service delivery or goods dispatch. In North Macedonia, receiving an advance creates a VAT obligation.
Details
Upon receiving an advance: 1) Issue an advance invoice with VAT within 5 days. 2) VAT is reported in the receipt period. 3) In the final invoice, the advance and its VAT are deducted. In e-Faktura, the advance invoice is submitted as standard type '380'.
Example
Project for 200,000 MKD + VAT. Client pays 50% advance = 100,000 + 18,000 VAT. You issue an advance invoice. After completion — final invoice for 200,000 + 36,000 VAT minus the paid advance.