"They're just small subscriptions, ten dollars here and there."
That was the answer from the owner of a small company when we asked about card payments abroad. Once we lined up the bank statements, the "small subscriptions" numbered about thirty: an e-mail suite, cloud storage, hosting, two AI tools, even an eSIM for a business trip. Not one invoice in the books. Not one denar of VAT accounted for.
That is not unusual. The invoices go to the mailbox of whoever opened the account, the card pays automatically, and nobody forwards them to the accountant. Yet VAT on them is due — it is just not the supplier who pays it. You do.
"But the company is in the US…"
That is always the first question. The Macedonian VAT Law has a clear rule for business-to-business services: the service is taxed where the recipient has its seat (Article 14(2), since 1 January 2024). Your company is in Skopje — so the US or Irish provider's service is, legally, supplied in North Macedonia.
"But they didn't charge me VAT…"
They can't — they have no seat here. So the law shifts the obligation to you: when the supplier has neither a seat nor a branch in North Macedonia, the recipient calculates, reports and pays the VAT (Article 32(4)). Late-payment interest is the recipient's too.
"But I'm not even VAT-registered…"
This is the part that surprises people most. A law office outside the VAT system, with a monthly Microsoft 365 subscription, was sure this did not apply to them. It does.
The law does not speak of a "registered person" but of a taxable person — anyone who independently carries out an economic activity (Article 9(1)): a company, a lawyer, a notary, an architect. Article 51(1) only says you do not have to register because of such purchases. It does not say you owe no VAT.
In short: a company or self-employed professional buying a service from a foreign supplier with no seat in North Macedonia calculates and pays the VAT itself — VAT-registered or not.
What it costs
The rate is 18% (Article 29). Amounts in dollars or euros are converted into denars at the National Bank's middle rate on the day the tax liability arises (Article 20). For monthly subscriptions that is the invoice date, or the payment date if you paid earlier (Article 31(3)).
| Example | Amount |
|---|---|
| Monthly subscription | USD 100 |
| NBRSM middle rate on the invoice date | MKD 53.00 |
| Taxable amount | MKD 5,300 |
| 18% VAT you account for | MKD 954 |
Zero for some, a cost for others
If you are VAT-registered, you account for those MKD 954 and at the same time deduct them as input VAT, because the service is used for your business (Article 34). Net — zero. But both entries must be in the return.
If you are not registered, you pay the VAT with no deduction (Article 51(3)). The USD 100 subscription really costs you 18% more. Better to know that when choosing the tool than after a tax audit.
How we fixed it
For the company from the start, we matched every card payment on the statement with an invoice from the provider's account ("Billing" / "Invoices"). Where there was no invoice, we requested one. For each, we calculated the VAT at that day's rate. A few days of work — instead of an unpleasant surprise during an audit.
If your card pays abroad too, run the same check — or write to us and we will do it together.