15th July 2021, Skopje – Modifications and amendments to the VAT Law, proposed by Ministry of Finance, and adopted by the Parliament of the Republic of North Macedonia today, are aimed at lowering the electricity price and reducing the expenses for the households.
According to the adopted modifications and amendments to the VAT Law, tax rate on supply of electricity to households is reduced from 18% to 5%. Reduced tax rate, pursuant to the legal solution, will apply from the day of entry into force of the Law on Modifications and Amendments to the VAT Law until 30th June 2022. Afterwards, i.e. from 1st July 2022 until 30th June 2023, preferential tax rate of 10% will apply on the supply of electricity to households.
The purpose of introducing a preferential tax rate on supply of electricity to households is to provide for a lower price for the citizens and to reduce their costs.