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The North Macedonian Government has adopted amendments to the VAT Law during July 2021. The amendments affect the supply for electricity to final consumers; a supply which has until now been subject to the standard rate of 18%.
As of 16 July 2021 and up until 30 June 2022, a reduced rate of 5% will apply to the supply of electricity while starting from 1 July 2022 and until 30 June 2023, the supply will be subject to a slightly higher but still preferential rate of 10%.
The legislation changes stipulate that as of 1 July 2023, the standard rate of 18% will be put back into effect.
The application of the reduced VAT rates is planned to at least partially offset the expected price hike, following pressure by key energy market players to increase the price of electricity due to 2020 reported losses.
For more information, please contact our Client Relationship Manager Mrs. Elena Kostovska, at our office in North Macedonia at skopje@eurofast.eu.
Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & the Middle East . The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit – Advisory & Corporate.
Client Relationship Manager
Eurofast Skopje
skopje@eurofast.eu
23/8/21