Pursuant to the amendments, the first-time purchase of apartments and residential buildings will continue to be subject to a preferential Value Added Tax ('VAT') rate of 5%, concluding 31 December 2018. Also, foreign diplomatic or consular offices have a new deadline to apply for VAT refunds for a period of five years following the expiration of the calendar year in which the respective sale was made.
Several of the recent amendments also concern the taxation of the exchange of goods from free zones and other parts of the country. In particular, the following market of goods will be subject to VAT:
- goods exported from free zones into the country, with the status of 'domestic goods'; and
- goods which are transported or imported in the free zones from the country in the event their total marketed value (excluding VAT) does not exceed MKD 60,000.
With respect to administrative issues, the National Assembly of the Republic of Macedonia has harmonised the penalty policy with the Law on Misdemeanours and introduced some additional obligations for enforcement agents with respect to the collection of VAT during procedures for enforceable collection of debt.