What is VAT? — Complete guide to Value Added Tax
VAT (Value Added Tax) is an indirect tax charged at every stage of production and distribution of goods and services. In North Macedonia, the standard rate is 18% and the reduced rate is 5%.
Definition
VAT (Value Added Tax) is an indirect tax charged at every stage of production and distribution of goods and services. In North Macedonia, the standard rate is 18% and the reduced rate is 5%.
Details
The mandatory VAT registration threshold is 2,000,000 MKD annual turnover. Below this threshold, registration is voluntary. The VAT period is monthly or quarterly, depending on turnover. The return must be filed by the 25th of the month after the period.
Example
Example: You sell a service for 10,000 MKD + 18% VAT = 11,800 MKD total. You pay the 1,800 MKD VAT to UJP, but deduct VAT paid on purchases.