Recent amendments to the VAT Law in North Macedonia introduce significant changes to the VAT treatment of low-value consignments imported into the country. The goal of the amendments is to abolish the existing VAT exemption for low-value commercial parcels and to introduce a much narrower exemption limited to non-commercial, person-to-person shipments. The law will enter into force eight days after its publication. Key points are below.
Abolition of the VAT exemption for low-value commercial consignments
The amendments eliminate the current VAT exemption for the import of low-value consignments not exceeding EUR 22 (in MKD equivalent) sent from abroad to recipients in North Macedonia.
As a result, all commercial parcels, regardless of whether their value is below EUR 22, will be subject to VAT upon importation.
New VAT exemption for non-commercial small consignments
A new, narrowly defined VAT exemption is introduced for low-value consignments that meet all of the following requirements:
- the goods are sent free of charge;
- the sender is a natural person abroad, and the recipient is a natural person in North Macedonia;
- the total value of the consignment does not exceed EUR 22 (in MKD equivalent);
- the goods are of a non-commercial nature.
If a consignment contains multiple items whose combined value exceeds EUR 22, VAT exemption may be applied only to items that would individually qualify.
The value of a single item cannot be split to fall within the EUR 22 threshold.
Excluded goods
The new exemption does not apply to:
- tobacco and tobacco products,
- alcohol and alcoholic beverages,
- perfumes and toilet waters.
Practical implications
The abolition of the VAT exemption for commercial consignments valued up to EUR 22 is expected to have several practical effects on the market and consumer behaviour. With the introduction of an 18% VAT charge, low-value online purchases from foreign e-commerce platforms will become more expensive, reducing their price advantage compared to products sold by domestic retailers. As a result, the volume of small online orders is expected to decrease, since for many items it may become more economical for consumers to buy locally rather than order from abroad.
Over time, the measure is expected to strengthen the competitiveness of domestic businesses by reducing the inflow of untaxed goods and limiting informal resale activities.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
