VAT Law — Foundation of the MK tax system
The VAT Law is the main legal act regulating value-added tax in North Macedonia. It determines: who is a taxpayer, rates (18% and 5%), the right to deduction and exemptions.
Definition
Details
Key provisions: supply of goods/services is taxable, registration threshold 2M MKD, tax period monthly/quarterly, return due by 25th, input VAT is deductible (with proper invoice), export = 0%, financial and health services = exempt without deduction right. Harmonized with EU directives as part of the accession process.
Example
All VAT tax rules derive from this law: the 18%/5% rates, the return deadline by the 25th, the right to deduct VAT from purchases, the e-Faktura obligation.