ANALYSIS
Complicated VAT Refund Procedures
& Delays Increase the Tax Burden
Authors: Sanja Risteska, Supervisor & Svetlana Josifovska, Senior, both in Tax and
Outsourcing department at Grant Thornton Consulting Skopje
Indirect taxation is becoming increasingly complicated varies between jurisdictions and is prone to government tinkering. And, the bar for compliance is rising all the time. Getting on top of this complexity and change is not only vital
to avoiding mistakes, audits and disputes, but also to enabling products and services to move into new markets and managing cash flows efficiently. The following Q&As provide a quick overview of the situation:
Current rate(s) of indirect tax?
Standard rate of 18%
Preferential rate of 5%
Svetlana Josifoska
Principal indirect tax?
Value Added Tax (VAT) is the principal indirect tax in R. Macedonia. It is
a tax on consumer expenditure, and is collected on business transactions
and imports.
What is input VAT?
1. The value added tax for the supply conducted between taxpayers
2. The value added tax for payments between taxpayer for supply that will
occur in the future; and
3. The value added tax paid for import of goods.
Is there a registration limit for the tax?
As of January 2015, the registration limits both for legal entities and
individuals exceeding 1,000,000 Denars turnover.
How often do returns have to be submitted?
Quarterly or monthly latest till the 25 day of the following month/quarter.
Are penalties imposed for the late submission of returns/payment of tax?
If a VAT return is submitted late then a penalty of €1500 for legal entity as
well penalty for the responsible person up to 30% from the penalty from
the legal entity.
Penalty for individuals can be imposed up to €225. For late payment, a VAT
interest can be charged at 0.03% per day.
Can the VAT incurred by foreign businesses be claimed if they are not
registered here?
Yes, in the case of existence of reciprocity and meeting certain conditions.
VAT exemption for projects
In 2014, projects financed by donation agreements made between foreign
donors and the Government of RM and IPA funds were officially excluded
from paying VAT.
Sanja Risteska
VAT Refund Rules
Taxpayers are entitled to
a VAT refund when the
amount of tax paid in a certain tax period is higher than
the amount of tax calculated
for turnover in the same
period. Taxpayers are entitled to a tax refund within
30 days of submitting a tax
return; if they do not, they
have the right to claim interest on the delayed payment
– 0,03% per day.
Tax Audit
Tax officers retain the right
to conduct a tax audit.
Continued on page 13
Spring 2016 Issue 49 11