The Ministry of Finance of North Macedonia has announced an increase of the VAT-registration taxable turnover threshold from MKD 1 million to MKD 2 million per year.
The changes in the threshold amount have varied throughout the last 20 years, with one of the reasons being the desire to incorporate a large number of micro and small entities that were outside the VAT scheme because of lower annual turnovers, in hopes of collecting more VAT revenues.
According to analysis done by the Ministry of Finance, taxpayers with turnover of up to 2 million MKD contribute only 2% of the total VAT collection even though the processing of their tax returns is time consuming. Clearly, the tax administration is looking for ways to optimize the administrative burden and carefully evaluates the time it spends against the collection results.
The mandatory registration threshold for VAT purposes of MKD 2 million will apply to all taxpayers who will – in the course of 2020 – have turnover above this amount, starting from January.
Hristina Panchevska
Administrative Assistant
hristina.panchevska@eurofast.eu