North Macedonia: VAT law amendments; new guidance on Pillar Two top-up tax

Preferential 5% VAT rate for residential buildings and apartments extended to December 31, 2028.

The following amendments to the value added tax (VAT) law were enacted:

The VAT exemption for imports of small value shipments was amended to apply only to small shipments of non-commercial nature sent from one individual to another—effective December 18, 2025. The threshold value remains the same (€22), and as previously, the exemption does not apply for alcohol and alcoholic beverages, perfumes, tobacco, and tobacco products.

The preferential 5% VAT rate for residential buildings and apartments was extended to December 31, 2028.

In addition, a new rulebook on calculation and payment of the Pillar Two top-up tax was published in official gazette No. 270 (dated December 31, 2025). The rulebook specifically refers to the OECD models and prescribes the forms for qualified domestic minimum top-up tax (QDMTT), the income inclusion rule (IIR), and the undertaxed profit rule (UTPR).

Read a January 2026 report prepared by the KPMG member firm in North Macedonia

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North Macedonia: VAT law amendments; new guidance on Pillar Two top-up tax

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