On 28 September 2026, the Government of North Macedonia adopted a Decision amending the Decision on determining the type of goods and the temporary period for applying a reduced VAT rate. Effective from 29 September 2026, the VAT rate for certain energy products has been reduced from the standard 18% to a reduced rate of 10%. This measure targets specific energy goods to mitigate rising energy costs for households and businesses, aligning with the government’s broader economic relief package. The Public Revenue Office has issued guidance on the implementation, including the list of affected products, invoicing requirements, and transitional provisions for contracts spanning the rate change.
Key Takeaways
- Immediate Rate Reduction for Designated Energy Products: The reduced 10% VAT rate applies to a defined list of energy products such as electricity, natural gas, district heating, and certain solid fuels, directly lowering end-user prices and improving affordability.
- Compliance and Invoicing Adjustments: Taxpayers must update their invoicing systems to apply the correct rate, ensure proper classification of goods, and maintain documentation supporting the application of the reduced rate for audit purposes.
- Temporary Measure with Defined Duration: The reduced rate is applicable for a limited period as specified in the government decision, requiring businesses to monitor the expiration date and prepare for reversion to the standard rate unless extended by further legislation.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement