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Frequently asked questions on the implementation of the procedure for partial VAT refund

The Law on Partial Value Added Tax Refund to Natural Persons entered into force on 1 July 2019.

1. What manner is the right to a partial VAT refund exercised in?

The right to a VAT refund is exercised by reporting the data from the bar code on the fiscal receipt through an application software for this purpose of the Public Revenue Office.

The individuals who qualify for the right of a VAT refund and are registered on the e-Personal tax system, it is necessary to download the application “My VAT” on their device, which by scanning the barcode on the fiscal receipts enables exercising of the right to a VAT refund.

The right to a VAT refund can be exercised only once for a fiscal receipt.

2. What are the conditions for exercising the right to a VAT refund?

The natural persons that have the right to a partial VAT refund are the ones who:

– have turned 15 years old;

– possess a valid ID document– an identity card or a passport issued by a competent authority in the Republic of North Macedonia;

– are registered on the e-Personal tax system of the Bureau of Public Revenues and

– possess a transactional account at a holder with payment operations in the Republic of North Macedonia.

3. Which fiscal receipts does not the right to a VAT refund refer to?

The provisions of the Law on Partial Value Added Tax Refund do not refer to the fiscal receipts which are issued by entities performing continuous turnover and for which the subsequent payments are foreseen, i.e. bills for electricity, water, telephone services, heating, cooling etc.

The right to a VAT refund does not refer to the fiscal receipts for which a sales slip, an invoice or other document to a legal entity is issued, a sole proprietor performing an independent activity or a natural person registered for VAT purposes.

Furthermore, the right to a VAT refund for the fiscal receipts over 30,000 denars and the canceled receipts cannot be exercised.

5. What is the amount of the partial value added refund to natural persons?

The tax refund, pursuant to the provisions of the Law, is in the amount of 15% of VAT expressed in the fiscal receipt.

Example: For a fiscal receipt of 1,000.00 denars, in the amount of VAT rate of 18% the tax refund is in the amount of 27 denars.

6. Which period is tax refund realized in?

The tax refund is performed within 60 days after the end of the calendar quarter in which the fiscal receipt was issued. For example, for a fiscal receipt from 15 January, the tax refund should be performed not later than 31 May.

The minimum amount for the VAT refund for one quarter is 50 denars. If the amount of the refund is less than 50 denars, it is transferred for a refund in the following quarter.

The refunded amount of the VAT does not constitute an income which is subject to taxation with a personal income tax.

7. What penal provisions are determined by the Law on Partial Value Added Tax Refund?

Pursuant to the provisions of the Law, a fine of 250 euros in denar equivalent is foreseen for natural persons who shall report fiscal receipt which does not refer to the right to a VAT refund (fiscal receipts for which a sales slip, an invoice or other document, and bills for electricity, water, telephone service, heating, cooling, etc. is issued.)

A fine in the amount from 250 to 1,000 euros in denar equivalent for the issuer of the fiscal receipt who shall not report a cancelled fiscal receipt in the Public Revenue Office is foreseen. Also, a fine is foreseen for the responsible person in the legal entity in the amount of 150-250 euros in denar equivalent for the same infringement.