The Law on Value Added Tax introduces the value added tax and regulates its assessment and payment. Value added tax, as a general consumption tax, is assessed and payable at all stages of production and trade, as well as throughout the service sector, unless otherwise prescribed by this Law.
The subject of taxation with value added tax is the supply of goods and services rendered for consideration within the territory of the country by a taxable person during its economic activity, as well as the importation of goods.
Pursuant to the provisions of the Law, value added tax is calculated by applying proportional tax rates to the tax base for taxable supplies of goods and services and for imports, namely: the standard tax rate of 18%, which applies to all supplies and imports, and the reduced tax rate of 5%, which applies to supplies and imports subject to the preferential tax rate.
It is important to note that the Act also provides for provisions set out in Chapter IV – TAX EXEMPTIONS, on the basis of which an exemption from value added tax is granted for the supply of specifically enumerated goods and services.
Having regard to the foregoing, the Government of the Republic of North Macedonia, through the Ministry of Finance, submitted to the Assembly of the Republic of North Macedonia, during September 2025, a Draft Law amending and supplementing the Law on Value Added Tax.
The proposed legislative amendment aims to abolish the VAT exemption for the importation of low-value consignments delivered from abroad to recipients in the country, where the total value per consignment does not exceed the amount of EUR 22 in Macedonian denar equivalent. It also prescribes a VAT exemption for goods sent as small consignments of a non-commercial nature, from a natural person to another natural person, where the value does not exceed 22 euros. The exemption does not apply to alcohol and alcoholic beverages, perfumes and toilet water, or tobacco and tobacco products.
With the Draft Law amending and supplementing the Law on Value Added Tax, the following amendments are proposed: in Article 27-b, paragraph 1, after point 2, a new point 2-a) shall be added, reading as follows:
“2-a) goods sent from abroad by a natural person and received by a natural person with residence or approved stay in the Republic of North Macedonia, provided that the total value of the consignment does not exceed the amount of EUR 22 in denar equivalent, that the goods are sent free of charge, and that such importation is of a non-commercial nature. Where the total value of a consignment consisting of two or more goods exceeds the amount of EUR 22 in denar equivalent, the exemption shall be granted up to that amount for those goods which, if imported separately, would be exempt. Where the value of an individual good exceeds the amount of EUR 22 in denar equivalent, its value may not be divided for the purpose of exercising the exemption up to that amount. The exemptions shall not apply to tobacco and tobacco products, alcohol and alcoholic beverages, as well as perfumes and toilet waters;”.
A more significant amendment to the Law is considered to be the proposal to delete Article 27-b, paragraph 1, point 26-a, thereby abolishing the value-added tax exemption for low-value consignments delivered from abroad to recipients in the country, where the total value per consignment does not exceed the amount of EUR 22 in Macedonian denar equivalent.
Article 27-b, paragraph 1, point 26-a of the Law on Value Added Tax reads as follows:
“Low-value consignments delivered from abroad to recipients in the country, where the total value per consignment does not exceed the amount of EUR 22 in denar equivalent. The exemptions shall not apply to tobacco and tobacco products, alcohol and alcoholic beverages, as well as perfumes and toilet waters.”
Upon adoption of the Law amending and supplementing the Law on Value Added Tax by the Assembly of the Republic of North Macedonia, it shall enter into force on the eighth day following its publication in the “Official Gazette of the Republic of North Macedonia”.