North Macedonia: VAT and excise tax changes

Amendments to the value added tax (VAT) and excise duty laws have an effective date of 12 March 2022.

Amendments to the VAT and excise duty laws have an effective date of 12 March 2022.

Amendments to the value added tax (VAT) and excise duty laws—measures that are aimed at mitigating increasing energy and food costs—were published in the official gazette and have an effective date of 12 March 2022.

VAT amendments

  • The supply of certain food products for human consumption will be subject to a VAT rate of 0% (from 17 March 2022 through 31 May 2022), and the supply and import of certain types of fuels will be subject to the preferential VAT rate of 10% (from 12 March 2022 through 31 May 2022).
  • The period of application of the reduced VAT rates for the supply of electricity for households is extended, as follows:
    • The preferential VAT rate of 5% will apply through 31 December 2022 (extended from 30 June 2022).
    • The preferential VAT rate of 10% will apply from 1 January 2023 through 30 June 2023 (extended from 1 July 2022 through 31 December 2022).
  • The import of natural gas and electricity through a transmission system will be exempt from VAT. 

Excise tax (duty) amendment

Specific types of fuels will be subject to a reduced excise tax from 12 March 2022 through 31 May 2022.

Read a March 2022 report prepared by the KPMG member firm in North Macedonia

 

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