On 18 August 2026, the Revenue Administration of the Republic of North Macedonia, operating under the authority of the Law on Tax Procedure and the Rulebook on the Organization and Manner of Operation of the Administration, undertook an official bilateral mission to the Republic of Türkiye at the invitation of the Special Advisor to the President of Türkiye for Balkan Affairs, Mr. Sabri Demiri. The visit formed part of the ongoing implementation of the Agreement between the Government of the Republic of North Macedonia and the Government of the Republic of Türkiye for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, originally signed in 2018 and amended protocolarily in 2023 to incorporate provisions regarding the exchange of information on digital tax flows and electronic invoicing. The high-level delegation, comprising senior tax officials and legal advisors from the Revenue Administration, engaged in constructive dialogues with counterparts from the Turkish Ministry of Treasury and Finance and the Revenue Administration of Türkiye. Key discussion points included the enhancement of mutual administrative assistance in tax matters, the alignment of e-invoice technical specifications between the two jurisdictions, and the establishment of a permanent joint working group to facilitate real-time information exchange regarding cross-border taxpayer entities. The meeting also addressed the operationalization of the Convention on Mutual Administrative Assistance in Tax Matters, signed by both states in 2019, with a view to strengthening the capacity of tax authorities to combat aggressive tax planning, transfer pricing abuses, and VAT fraud schemes that transcend national borders. Furthermore, the parties explored the feasibility of integrating North Macedonia’s electronic tax registry with Türkiye’s VAT information exchange system, thereby enabling automated verification of invoice authenticity and reducing the administrative burden on compliant taxpayers operating in both markets. The bilateral engagement concluded with the signing of a Memorandum of Understanding (MoU) outlining concrete steps for the establishment of the joint working group, the timeline for technical harmonization of e-invoice formats slated for completion by December 2026, and a commitment to annual high-level reviews of bilateral tax cooperation performance. The MoU also stipulates that both administrations will conduct parallel legislative reviews to ensure domestic laws fully support the envisioned information exchange mechanisms, with an ultimate target date of full operational capacity by the end of the 2027 fiscal year.
Key Takeaways
- Institutionalization of Real-Time Tax Information Exchange: The establishment of a permanent joint working group between the Revenue Administration of North Macedonia and the Revenue Administration of Türkiye will enable the systematic and real-time exchange of taxpayer data, including electronic invoice records, tax return submissions, and compliance statuses. This mechanism is designed to reduce the lag time between transaction occurrence and regulatory review, thereby strengthening the deterrent effect against tax evasion and base erosion. The working group is mandated to deliver a fully operational data exchange protocol within six months, with pilot testing commencing in the Q4 2026 tax filing season.
- Technical Harmonization of E-Invoice Specifications: A core objective of the bilateral talks was the alignment of e-invoice data structures, validation rules, and certification procedures between North Macedonia and Türkiye. Both administrations acknowledged the necessity of interoperable formats to facilitate seamless cross-border transactions for multinational enterprises and SMEs alike. The agreed harmonization roadmap includes the mutual recognition of certified e-invoice software providers, the adoption of a common XML schema compatible with the UNSM (United Nations Standardized Model for e-Invoicing), and the implementation of dual-validation mechanisms wherein each administration validates incoming invoices against its own domestic rules prior to acceptance. Full technical alignment is expected by December 2026, after which taxpayers registered in either jurisdiction will be able to issue and receive legally valid e-invoices without the need for separate domestic certification, thereby reducing operational costs and improving tax administration efficiency.
- Enhanced Mutual Administrative Assistance in Tax Crime Proceedings: The renewed commitment to mutual administrative assistance under the 2019 Convention will empower tax authorities from both countries to request and share evidence, freeze assets, and conduct joint investigations into cross-border tax crimes such as VAT carousel fraud, phantom billing, and transfer pricing manipulation. The updated protocols introduce expedited request procedures, allowing for responses within 60 days for standard requests and 30 days for urgent cases involving ongoing fiscal damage. Additionally, the MoU emphasizes the importance of confidentiality safeguards and the strict limitation of shared information to the purposes of tax assessment and collection, thereby addressing prior concerns among taxpayers regarding data privacy and competitive sensitivity.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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