Adopted amendments to the Law on Value Added Tax

The Government of the Republic of North Macedonia in order to improve the living standards of citizens and provide additional support for maintaining the liquidity of companies in times of economic crisis adopted the amendments to the Law on Value Added Tax which were published on 12.03.2022 in Official Gazette of the Republic of North Macedonia no. 57/2022. With the adopted amendments to the law is determined reduction of the value added tax rate, i.e. for part of the products and exemption from value added tax.

According to the legal provisions, in conditions of major natural disasters or epidemics in the Republic of North Macedonia, on the declared state of war, on the existence of a state of emergency or upon a decision on the existence of a state of crisis, when disturbances in the supply of population or disturbances have occurred or may occurred in other areas that endanger human life and health, disturbances on the domestic market due to lack of goods necessary for production, processing and for human life and health, as well as in conditions of need to provide products and raw material, which are of special strategic importance for the Republic of North Macedonia, are exempt from tax of added value, the turnover of human food products.

The law also provides that in the event of major natural disasters or epidemics in the Republic of North Macedonia, on the declared state of war, on the existence of a state of emergency or upon a decision on the existence of a state of crisis, when disturbances in the supply of population or disturbances have occurred or may occurred in other areas that endanger human life and health, disturbances on the domestic market due to lack of goods necessary for production, processing and for human life and health, as well as in conditions of need to provide products and raw material, which are of special strategic importance for the Republic of North Macedonia, the preferential tax rate of 10% is applied on the trade and import of energy sources.

The adopted legal solutions will ensure the implementation of the measure for reduction of the preferential VAT rate for basic food products from 5% to 0% for the products: bread; sugar; flour – type 400; sunflower edible oil; permanent milk, fresh meat; rice and eggs.

The amendments to the Law on VAT exempt from the payment of this tax the import of natural gas, electricity, heat and cooling energy.

VAT exemption for certain types of human food products will apply from 17.03.2022 to 31.05.2022.

The reduction of the VAT rate for energy trade will be from the day of publishing the regulations in the Official Gazette from 12.03.2022 to 31.05.2022.

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