North Macedonia VAT & E-Invoicing Updates 2026

The end of 2025 and the beginning of 2026 brought several relevant announcements and changes regarding VAT and e-invoicing in North Macedonia. Announced rules include amendments to the VAT exemption for small-value imports, the extension of the preferential VAT rate for residential buildings and apartments, and the launch of the pilot testing phase of its new e-invoice system, with an implementation roadmap. Additionally, North Macedonia published a new Rulebook on the Manner of Calculation and Payment of the Top-up Tax.

Implications for Taxable Persons

Regarding the amendments to the VAT Law, there are two significant updates. The first is that, since December 18, 2025, the VAT exemption for small-value shipments is limited to non-commercial items sent from one individual to another. In contrast, previously, it applied to all small shipments regardless of commercial intent. Notably, the EUR 22 threshold remains in place, and the exemption continues to exclude alcohol, perfumes, tobacco, and related products.

Additionally, the preferential VAT rate of 5% for residential buildings and apartments has been extended until December 31, 2028. Further minor changes include adjustments to the rules determining the place of supply for services connected to immovable property and services provided by tour operators. North Macedonia also published a new Rulebook on the Manner of Calculation and Payment of the Top-up Tax on December 31, 2025, aligning national rules with OECD standards and providing detailed guidance on calculating the top-up tax. 

Notably, on January 5, 2026, the Ministry of Finance and Public Revenue Office announced the launch of North Macedonia's pilot testing phase for its new e-invoice system, known as the e-Faktura. The pilot phase primarily aims to test the API that connects companies’ invoicing software with the e-Faktura platform. During this phase, taxable persons can submit digitally signed test e-invoices and view both sent and received documents, with each successful submission receiving a unique identifier (eID). 

In addition, the technical documents have also been made publicly available. Furthermore, PRO confirmed that while the e-invoicing pilot phase uses real data from the PRO registers, the test invoices themselves have no legal or tax effect. Regarding the implementation timeline, by the end of the first quarter of 2026, a client application and web portal will be available for companies without their own invoicing systems, and by the end of the second quarter, a production server will go live, enabling a gradual transition to full implementation.

Conclusion

The recent VAT and e-invoicing updates in North Macedonia mark a clear shift toward modernised tax administration and stricter compliance. Overall, these changes reflect a strategic push for transparency, efficiency, and alignment with EU and OECD international tax practices, prompting businesses to adapt to a more streamlined, digitally connected VAT environment.

Source: KPMG, Public Revenue Office of the Republic of North Macedonia