North Macedonia is reforming its VAT legislation to align with the EU VAT Directive, introducing changes to place of supply rules, foreign supplier registration, and invoicing requirements. Key measures take effect from January 2026, emphasizing clarity on service taxation, strengthening compliance oversight for non-resident businesses, and ensuring compatibility with EU systems.
E-Invoicing and Low-Value Import Changes: North Macedonia's Push Toward EU VAT Standards
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Author: Ema Stamenković
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22.12.2025
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North Macedonia is updating its VAT framework to better mirror the EU VAT Directive ahead of future accession. The reforms clarify the VAT treatment of land, services, foreign suppliers, and invoicing. Several measures will take effect from 1 January 2026, with others applying shortly after publication.
North Macedonia has published amendments to its VAT legislation to align domestic rules closer to the EU VAT Directive (2006/112/EC). These changes address areas of historical incompleteness or unclarity, without a full overhaul.
Separately planned major changes include an e-invoicing mandate and ending the VAT exemption on small-value e-commerce imports. Together, they highlight the country’s commitment to EU acquis convergence during its accession process.
Place of supply rules for services
The amendments refine place of supply rules for cross-border and digital services.
For online access to events supplied to private individuals, VAT is due where the customer is located (taxing consumption).
In contrast, data processing and information provision (including business data and know-how) to non-taxable persons are taxed at the supplier’s location.
The law also reorganises and expands place-of-supply articles for clearer, more accessible structure.
VAT registration obligations for foreign suppliers
Non-resident businesses supplying services to non-taxable persons in North Macedonia (where place of supply is domestic) must establish a permanent presence or appoint a local VAT representative.
This applies especially to electronically supplied services and cross-border consumer offerings. The amendments introduce explicit penalty ranges for non-compliance, covering legal entities and responsible individuals—aligning enforcement with EU norms and strengthening oversight of overseas suppliers.
VAT numbers and invoicing: preparing for EU systems
From 1 January 2026, a new VAT identification number format will prefix the national tax number with “MK”, matching EU structure. This simplifies Macedonian taxpayer identification and aids future EU reporting/verification integration.
Invoice requirements are updated: in cases like services with place of supply outside North Macedonia, or energy products (gas/electricity) sold to non-final consumers, invoices must reference the reverse-charge mechanism. This follows EU practice to minimise cross-border VAT liability disputes.
Implementation
Amendments generally enter into force shortly after Official Gazette publication, with specific measures (e.g., new VAT number format) applying from 1 January 2026.
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