VAT and e-Invoicing Updates in North Macedonia

Between late 2025 and early 2026, North Macedonia introduced key VAT and digital reforms, including limiting the low-value import VAT exemption to non-commercial parcels, extending the reduced VAT rate for residential buildings, issuing a Top-up Tax Rulebook aligned with OECD standards, and making targeted VAT clarifications. At the same time, the authorities launched pilot testing of the new e-Faktura e-invoicing system, with full production planned for Q2 2026, marking a major step toward EU-aligned, fully digital VAT compliance.

At the end of 2025 and the start of 2026, North Macedonia announced several important changes to VAT rules and e-Invoicing.

The updates include:

• Changes to the VAT exemption for small-value imports,
• An extension of the reduced VAT rate for residential buildings,
• The start of pilot testing for the new e-invoice system (e-Faktura),
• Publication of a new Rulebook on the Top-up Tax.

Since December 18, 2025, the VAT exemption for low-value shipments applies only to non-commercial parcels sent between individuals. Previously, it also covered commercial shipments.

• The EUR 22 threshold remains unchanged,
• The exemption still does not apply to alcohol, perfumes, tobacco, and similar products.

Minor changes were made to:

• Rules on the place of supply for services related to immovable property,
• VAT treatment of tour operator services.

On December 31, 2025, North Macedonia issued a new Rulebook on the calculation and payment of the Top-up Tax. The rules align national legislation with OECD standards and provide detailed guidance on how the tax should be calculated.

On January 5, 2026, the Ministry of Finance and the Tax Authority (Public Revenue Office) launched the pilot phase of the new e-invoicing system, called e-Faktura.

The pilot phase focuses on:

• Testing the API connection between company invoicing systems and e-Faktura,
• Allowing companies to submit digitally signed test e-invoices,
• Viewing sent and received invoices within the platform.

Each successfully submitted test invoice receives a unique electronic identifier (eID).

Important clarifications:

• The pilot uses real taxpayer data from PRO registers,
• Test invoices have no legal or tax effect,
• Technical documentation has been published and is publicly available.

Implementation timeline:

• By end of Q1 2026: A client application and web portal will be available for companies without their own invoicing software,
• By end of Q2 2026: A production system will go live, allowing a gradual move to full e-invoicing.

Overall, the reforms aim to improve transparency, efficiency, and alignment with EU and international tax standards.