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.
