FYR Macedonia/September 2014
Until 1 July 2014, the FYR Macedonian tax system recognized three types of VAT taxpayers depending on the VAT period applicable to them. Based on the annual turnover of taxpayers, the tax authority used to classify companies as either monthly, quarterly or annual taxpayers. As of July 2014, the calendar year as a VAT period is abolished and all annual taxpayers are now considered as quarterly taxpayers.
In light of the above change, companies that are transformed from annual to quarterly VAT taxpayers are now obliged to submit quarterly VAT returns starting from the 3rd quarter of 2014 (the return for which is due October 25, 2014). For the first six months of 2014, these companies were liable for submission of a combined return for the first 2 quarters of 2014 (effectively for the period 01.01-30.06.2014), due by 25 July, 2014.
Additionally, a number of other amendments to the VAT Law are currently in Parliamentary proceedings. Amongst the myriad of proposed changes to the VAT system the most notable one is the suggested reduction of the VAT mandatory registration threshold from MKD 2 million in annual turnover to MKD 1 million. This decrease in the VAT registration threshold is expected to be applicable as of 2015 and to impact thousands of companies in the small business sector.
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