Tax rate by region North Macedonia

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

North Macedonia applies an 18% standard Value Added Tax (VAT), administered by the Public Revenue Office (UJP), which covers digital products and electronic services. While domestic enterprises are protected by a MKD 1,000,000 annual turnover threshold, non-resident digital B2C suppliers face a “first-sale” rule requiring immediate local registration and potentially the appointment of a local fiscal representative. Furthermore, the country is executing a major digital shift with its e-Faktura system; following a live pilot phase launched in January 2026, real-time structured XML e-invoicing will become fully mandatory for all VAT-registered businesses on October 1, 2026.

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North Macedonia

North Macedonia applies a standard Value Added Tax (VAT) of 18% to digital products and services. The Public Revenue Office (PRO/UJP) administers VAT. Non-resident businesses providing digital services must register from the first B2C sale. 

Official government link: Public Revenue Office

18.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

From first sale

Online registration possible

Yes (via UJP portal at ujp.gov.mk)

Local representative needed

Yes

Registration procedure

Register via UJP portal; non-residents may need to appoint a local fiscal representative

List of digital and electronic services liable for tax

Digital products

Penalties

Penalties €300 to €10,000 per VAT violation.

Fiscal device/receipt violations: €2,000-5,000 (MKD equivalent); responsible persons in companies fined 30% of entity penalty.

Non-compliant invoices not legally valid for VAT deduction. (UJP / Public Revenue Office)

Registration threshold

First B2C sale

Filing interval

Monthly or quarterly

Filing deadline

25 days following the respective tax period

E-invoicing requirements

Yes

Record keeping

10 years 

How-To Guides: North Macedonia SaaS VAT

Step: 1 Threshold

Effective January 1, 2024, North Macedonia requires non-resident vendors of digital services to consumers (B2C) in Macedonia to register for and collect VAT, regardless of the sales amount. Registration is mandatory before the first supply.

 

For domestic entities or B2B focus, the general threshold is 2,000,000 MKD.

Step: 2 Business Registration

Foreign SaaS providers must register via the Public Revenue Office (PRO). Non-resident companies without a permanent establishment must appoint a local tax representative who is a VAT-registered entity in North Macedonia.

Step: 3 TIN/VAT Number

The Tax Identification Number (TIN) is issued by the Public Revenue Office.

Step: 1 Standard Rate

A standard VAT rate of 18% applies to SaaS and electronically supplied services (ESS).

 

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 18%. 

Step: 3 Reverse Charge (B2B)

Applies to cross-border B2B services. When selling to a VAT-registered business in North Macedonia, the buyer is responsible for self-assessing the VAT. The foreign seller does not charge VAT on the invoice.

Step: 1 Selling B2C

The foreign seller must charge 18% VAT at the point of sale, collect it, and remit it to the PRO through their local tax representative.

Step: 2 Selling B2B

Tax is not charged by the seller if the buyer provides a valid Macedonian VAT ID. The invoice must state “Reverse Charge Mechanism”. 

Step: 3 Invoice Requirements

From Oct 1, 2026, mandatory e-Faktura (XML/UBL format) applies via the PRO portal. Standard fields:

1. Supplier/Buyer Name & Address;
2. VAT IDs;
3. Sequential Invoice Number;
4. Date of supply; 5. Service description;
6. Tax base;
7. Tax rate and amount;
8. Total amount in MKD.

Step: 1 Filing Interval

Filing interval is:

  • Monthly (if annual turnover > 25M MKD)
  • Quarterly (if < 25M MKD).

Step: 2 Filing Deadline

Submit the VAT return (Form DDV-04) by the 25th day of the month following the tax period.

Step: 3 Submission

Must be filed electronically via the e-Tax (e-Porezi) portal. Payments are typically made via bank transfer in local currency (MKD).

Step: 4 Record Keeping

Records and invoices must be maintained for a minimum of 10 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating North Macedonia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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