Q&A RELATED TO THE PROJECT “MY VAT”

In the last few days, the popularity of the project for segmental reimbursement of the Value Added Tax (VAT), is very high. This is a measure that was announced in the electoral program on what now is the ruling party and has started as of July 1, this year. The goal of this measure is to preserve the concept of returning the money to the citizens as well as combating the grey economy and tax evasion. Issues on which the citizens and the authorities would become partners.

All the media report on this project, the ways and the procedure for partial reimbursement of the VAT on citizens accounts, deadlines etc.

Yet, the citizens are facing a number of dilemmas and questions on how they can exercise this right, due to the fact that it represents a novelty in the sphere of economy.

F2N2 team made an effort to secure answers on a number of questions that can be of benefit for the citizens and inform the public. The answers on the following questions are secured from the Public Revenue Office and derive from the Law on Tax on partial reimbursement of Value Added Tax.

1. Who is entitled of Tax reimbursement?

The right of partial reimbursement of VAT has every 15 year (and above) individual, that is in a possession of a valid Identification document, that is registered as a user in the E-PDD system of the PRO and possesses account number that executes payments in the financial system of Republic of North Macedonia.

2. What are the types of fiscal bills which are un-eligible for partial reimbursement of VAT?

• Fiscal bill over 30000 MKD

• Fiscal bill that is reversed / canceled

• Fiscal bill for which an account receipt, invoice or any other document is issued addressed at legal entity, individual trader, individual that performs the business independently or individual that is registered VAT payer.

• Fiscal bills that are accompanied with the bills for the subjects that perform certain service and presume continual payment (electricity supply, water supply, telecommunications services, heating and cooling and others).

  3. What are the types of fiscal bills that are eligible for partial reimbursement of VAT?

The partial reimbursement of VAT is eligible for the following fiscal bills, that are in line with the Law and registering viral payments for purchased goods and services that are tax obliged in accordance with the Law on VAT:

• Catering and tourist services (Including restaurants and food purchase);

• Lawyer and notary services;

• Food and medicine;

• Home appliances, IT equipment, technology and mobile phones;

• Clothes, shoes and accessories;

• Construction services that do not exceed 500 euros (for services above 500 EUR converted in MKD the viral payment is obligatory, which is not subject to reimbursement); ,

except for the fiscal bills highlighted in point 2 for which in accordance with the Law on Tax on partial reimbursement of Value Added Tax освен од фискалните сметки погоре наведени во точка 2, за кои со Law on Tax on partial reimbursement of Value Added Tax the reimbursement is not allowed.

4. In the context of the previous question, the following one arises: Is there partial reimbursement of VAT for fiscal bills that are issued for health and medical/hospital services?

In accordance with the Law on VAT, the health and medical/hospital services are not subject to VA taxation, having in mind the previous they are not eligible for reimbursement.

In this category the services coming from the beauty and cosmetics, massage saloons, services from the unconventional methods of treatments and veterinary services, are eligible for reimbursement.

Fiscal bills on medicine can be used for the partial reimbursement since the medicine are with preferential tax rate of 5%.

5. How one can exercise the right of partial reimbursement of the VAT?

First you scan the barcode of the fiscal bill through Мој ДДВ app which is available in google play store, n.b. it is expected to be available in apple store for the iOS users soon. In order to sign in the citizens should use the same e-mail and password from their user profile of Е-ПДД.

The amount of the reimbursement is 15% of the VAT expressed in each separate fiscal bill.

The deadline for exercising the right is 10 days upon the issuance of the fiscal bill. The reimbursement can be performed only once per fiscal bill. The partial reimbursement of VAT will be wired to the bank account within 60 days upon the year quarter in which the bill is issued.

The app offers the citizens to have an overview of the payments and transfers as well as the amount of the reimbursement from the fiscal bill that is reported and granted by the PRO.

6. How will the citizens that do not possess a smart phone exercise their right for partial reimbursement of the VAT?

For all the citizens that need assistance in this process i.e. elderly people, socially-vulnerable groups the PRO is fully prepared to provide such, through the kiosk-machines, barcode readers and smart phones in its 36 organizational units.

7. Where can citizen report non-issuance of a fiscal bill?

As it was the case until now, irregularities are reported on the free phone line 198, through a written form to PRO or in the contact center 0800 33 000 (only leandline) or on the phone 02/32 53 200 as well as on the email [email protected]