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North Macedonia

Briefing Document & Podcast: E-Invoicing & E-Reporting in North Macedonia

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SUMMARY

North Macedonia is implementing a comprehensive, real-time electronic invoicing system (e-Faktura), requiring all VAT-registered businesses to issue invoices electronically through a central platform operated by the Public Revenue Office (PRO). A pilot program began January 1, 2026, and mandatory adoption is slated for October 1, 2026. This system is a “clearance” model, meaning the PRO must validate each invoice in real-time before it is considered legally valid. Non-compliance will result in penalties. Businesses need to prepare for this significant shift by updating their systems, obtaining necessary digital certificates, and adapting their accounting processes.

Key Themes & Information:

1. Scope and Coverage:

  • Broad Application: The e-Faktura mandate applies to virtually all invoice-based transactions among VAT taxpayers in North Macedonia, including domestic B2B (business-to-business) and B2G (business-to-government) transactions.
    • “The e-Faktura mandate applies broadly to all invoice-based transactions among VAT taxpayers in North Macedonia. This covers B2B and B2G invoices…domestically, essentially all “non-cash” transactions.”
  • B2C Invoices Included: Formal invoices issued to consumers (e.g., for high-value or non-cash transactions) are also within the scope. Cash register receipts will likely remain under the current fiscalization rules.
    • “While B2C retail sales…are generally handled via fiscal cash registers…any formal invoices issued to consumers…are within scope of the e-invoicing system as well.”
  • Cross-Border Reporting: Data from export invoices and other cross-border sales will be captured to maintain a complete VAT audit trail.
    • “Cross-border transactions are expected to be included in the reporting scope too: authorities have signaled that data from export invoices and other cross-border sales will be captured…to maintain a complete VAT audit trail.”
  • Taxable Persons: All VAT-registered businesses, including foreign companies registered for VAT in North Macedonia, are required to comply.
    • “All VAT-registered businesses established in North Macedonia fall under the mandate… Non-established companies (foreign businesses) that are registered for VAT in North Macedonia…are also expected to comply…”

2. Implementation Timeline:

  • Pilot Phase: Started January 1, 2026, involving a select group of businesses.
  • Mandatory Adoption: October 1, 2026. After this date, using the e-Faktura platform becomes obligatory.
    • “The target date for mandatory adoption is October 1, 2026. From that date…using the e-Faktura platform becomes obligatory for all taxpayers issuing invoices…”
  • No Official Grace Period: Businesses are expected to be compliant by the mandatory date. The pilot phase serves as the transition period.
    • “There is no official “grace period” explicitly announced… Businesses are expected to be compliant by the mandatory date.”

3. How the System Works (Clearance Model – CTC):

  • Real-Time Validation: North Macedonia is implementing a centralized, real-time “clearance” model (Continuous Transaction Control or CTC). All e-invoices are transmitted to the PRO’s central platform for validation at the moment of issuance.
    • “North Macedonia is implementing a centralized, real-time “clearance” model of e-invoicing… All e-invoices will be transmitted to the Public Revenue Office (PRO)’s central platform at the moment of issuance for validation.”
    1. Workflow:Supplier generates an invoice.
    2. The invoice is digitally signed and sent to the PRO’s platform.
    3. The PRO system validates the invoice.
    4. Upon successful validation, the PRO assigns a unique identification code (eID).
    5. The cleared invoice is made available to the buyer.
  • No separate action from supplier: Real-time reporting occurs at the same time as invoice issuance.
    • “Invoice data is reported to the authorities at the same time the invoice is issued (in fact, the invoice must be routed through the authority first).”

4. Technical Requirements:

  • Structured Electronic Format: Invoices must be issued in a structured electronic format (machine-readable data file), likely XML-based and compatible with international standards (EN16931 syntax). PDF scans or paper are not acceptable as the official invoice.
    • “Invoices must be issued in a structured electronic format…not PDF scans or paper.”
  • Digital Signature: Each e-invoice must carry a digital signature.
  • Transmission Methods:API (Machine-to-Machine): For companies with their own invoicing software or ERPs.
  • Web Portal/Application: A free web-based application will be provided by the PRO for smaller businesses.
  • Data Content: Full invoice details are required, including seller and buyer information, date, invoice number, description of goods/services, quantities, tax base, VAT amount, etc.
    • “The data points that must be provided to the tax authorities are essentially the full invoice details…These are the same fields required by the VAT Law for any valid invoice.”
  • Transmission Timing: Invoices must be transmitted at the moment of issuance. An invoice is considered legally issued only after it has been cleared and an ID returned.
    • “Every invoice must be transmitted at the moment of issuance. In fact, legally, an invoice will be considered issued only once it has been cleared and returned with an ID.”

5. E-Reporting (Transactions Not Covered by E-Invoices):

  • While most transactions will be cleared through the e-Faktura, the authorities may implement a complementary e-reporting obligation for certain transactions that might not go through the clearance platform.
    • “…for certain transactions that might not go through the clearance platform, the authorities may implement a complementary e-reporting obligation.”
  • No specific guidance available. The timelines for transmitting e-reporting data have not been explicitly published.
    • “The timelines for transmitting e-reporting data have not been explicitly published as of the latest updates.”

6. Penalties for Non-Compliance:

  • Failure to issue invoices through the system when required is equivalent to failing to issue a proper invoice.
    • “Failure to issue invoices through the system when required will be equivalent to failing to issue a proper invoice or failing to keep records.”
  • Fines range from approximately €300 to €10,000 (in Macedonian Denar equivalent) for companies, with larger companies facing higher fines.
  • Failure to transmit data on time means the invoice isn’t legally valid.
  • Incorrect or inaccurate data can lead to penalties or audits.
  • “Once mandatory, a business not using e-Faktura is essentially non-compliant with invoicing regulations.”

7. Archiving Requirements and Retention Period:

  • Taxpayers must archive e-invoices in accordance with existing record-keeping rules.
  • Though the new e-Faktura system will store the invoices in the government database, businesses are still responsible for keeping their invoice records (in electronic form) in an “authentic and legible” format for the required retention period.
    • “Although the new e-Faktura system will store the invoices in the government database, businesses are still responsible for keeping their invoice records (in electronic form) in an ‘authentic and legible’ format for the required retention period.”
  • The retention period is commonly five or ten years.

8. VAT Returns:

  • North Macedonia does not currently offer pre-filled VAT returns, and there are no announced plans to introduce this feature with the e-invoicing project.
    • “At present, North Macedonia does not offer pre-filled (pre-populated) VAT returns for taxpayers, and the current e-invoicing project has no announced feature to introduce pre-filled VAT declarations.”
  • Taxpayers will still be responsible for compiling and submitting their VAT returns manually.

9. Legal and Regulatory References:

  • The e-invoicing reform is backed by legal changes in North Macedonia, including amendments to the Law on VAT and related bylaws.
  • The Public Revenue Office (UJP) provides information and technical documentation on its website.

Action Items & Recommendations:

  • Assess Impact: Businesses should evaluate how the e-Faktura mandate will impact their current invoicing and accounting processes.
  • System Updates: Businesses need to update their accounting/ERP systems or plan to use the PRO’s web portal.
  • Obtain Digital Certificates: Secure necessary digital certificates for signing e-invoices.
  • Training: Train staff on the new invoicing procedures.
  • Monitor Updates: Stay informed about the latest regulations and guidelines from the PRO and the Ministry of Finance. Consult the government’s official publications for details:
    • Public Revenue Office’s announcements
    • Ministry of Finance’s statements
    • Updated VAT Law provisions

Conclusion:

North Macedonia’s e-invoicing mandate represents a significant change for businesses operating in the country. Proactive preparation and compliance are crucial to avoid penalties and ensure a smooth transition to the new system. Businesses should begin assessing their readiness and taking the necessary steps to comply with the new requirements well in advance of the October 2026 deadline.

INDEPTH ANALYSIS

North Macedonia is introducing a comprehensive electronic invoicing system (“e-Faktura”) with real-time tax reporting, aiming for full implementation by late 2026. Below is an overview of its scope, timeline, requirements, and related aspects, based on the latest available information from official releases and expert summaries:
  • Scope of Transactions: The e-Faktura mandate applies broadly to all invoice-based transactions among VAT taxpayers in North Macedonia. This covers B2B and B2G invoices (business-to-business and business-to-government) domestically, essentially all “non-cash” transactions. In practice, any invoice that a business is required to issue (for sales of goods or services) must eventually be issued electronically through the central platform. While B2C retail sales (business-to-consumer) are generally handled via fiscal cash registers in North Macedonia’s current system, any formal invoices issued to consumers (for example, high-value or non-cash B2C transactions where an invoice is required or requested) are within scope of the e-invoicing system as well. (Cash register receipts will likely continue under existing fiscalization rules, but the reform ensures that all invoicing that occurs on paper today will move to the electronic platform.) Cross-border transactions are expected to be included in the reporting scope too: authorities have signaled that data from export invoices and other cross-border sales will be captured (the system will cross-check invoice data with customs records) to maintain a complete VAT audit trail. In summary, domestic B2B/B2G invoices are the primary focus, and any taxable person issuing an invoice in North Macedonia – including non-resident companies registered for VAT locally – will be required to use e-Faktura for those invoices. [fiscal-req…ements.com], [eurofast.eu] [spaceinvoices.com] [eurofast.eu] [sovos.com], [grantthornton.global]
  • Taxable Persons in Scope: All VAT-registered businesses established in North Macedonia fall under the mandate. This ranges from large corporations down to small enterprises and sole proprietors, as long as they are required to issue VAT invoices. Government entities receiving invoices will also use the system (the pilot explicitly included companies that invoice public institutions). Non-established companies (foreign businesses) that are registered for VAT in North Macedonia (through a fiscal representative or local branch, as required by recent law changes) are also expected to comply – there is no separate exclusion for non-resident taxable persons. In other words, if a foreign company has a North Macedonia VAT number and issues invoices under that VAT number, those invoices must be e-invoices via the platform, just like those of local firms. (Recent amendments to the VAT Law introduced an obligation for certain foreign suppliers to register for VAT and appoint a local VAT agent; once registered, they become subject to the same invoicing rules.) Multinational companies operating in North Macedonia will thus need to ensure their local subsidiaries or registrations use e-Faktura for in-scope transactions. [sovos.com] [eurofast.eu] [grantthornton.global]
  • Implementation Timeline: The rollout is phased. A pilot/testing phase began on January 1, 2026, during which a selected group of businesses are integrating and trialing the system. The pilot involves companies of various sizes (particularly larger companies, those interacting with government, and volunteers) to ensure the system is tuned before full rollout. The target date for mandatory adoption is October 1, 2026. From that date (beginning of Q4 2026), using the e-Faktura platform becomes obligatory for all taxpayers issuing invoices, effectively replacing traditional paper or PDF invoice processes. (Earlier sources indicated “by Q3 2026” which implies the mandate kicks in during Q3; the most concrete date given is 1 October 2026.) There is no official “grace period” explicitly announced after the go-live – instead, the approach is to have a lengthy pilot and gradual phase-in beforehand. Businesses are expected to be compliant by the mandatory date. However, the phased approach itself serves as a transition period: throughout early-mid 2026, companies are encouraged to get ready, test their integration, and adapt systems. By the time of full mandate, non-compliant invoicing (outside the platform) will technically violate the law. In practice, tax authorities often show some lenience in the very initial weeks of a new system, but formally no extra grace period (where penalties are waived) has been declared. The expectation is a “big bang” switch to mandatory e-invoicing for everyone at the appointed time. (Thus, businesses should not count on an additional delay or grace; the “grace” was effectively the pilot/testing window.) [rtcsuite.com], [fiscal-req…ements.com] [eurofast.eu] [eurofast.eu], [fiscal-req…ements.com] [sovos.com]
  • How the System Works (Clearance Model): North Macedonia is implementing a centralized, real-time “clearance” model of e-invoicing – often referred to as a Continuous Transaction Control (CTC) system. All e-invoices will be transmitted to the Public Revenue Office (PRO)’s central platform at the moment of issuance for validation. The system essentially inserts the tax authority into the invoicing process as an intermediary to approve and record each invoice in real time. The workflow for an invoice under e-Faktura will be as follows: [rtcsuite.com], [fiscal-req…ements.com] [fiscal-req…ements.com]
    1. The supplier generates an invoice using either their own software (ERP/accounting system) or a free government-provided e-invoicing application/portal.
    2. The invoice (in a standard structured electronic format) is digitally signed by the issuer and sent electronically to the PRO’s central e-invoice platform (often referred to as “DAP” in local documentation, for the tax authority’s system). [snitechnology.net], [snitechnology.net]
    3. The PRO system receives the invoice data and instantly validates it. This includes checks for correct format, required fields, digital signature, and basic tax logic.
    4. Upon successful validation, the tax authority’s platform assigns a unique identification code (eID) or invoice number to the e-invoice, effectively “clearing” it. This timestamped code confirms the invoice is now official and VAT-compliant. [snitechnology.net], [fiscal-req…ements.com]
    5. The cleared invoice is then made available to the buyer. In fact, the platform will automatically dispatch the approved e-invoice to the customer (if the customer is also on the system) or at least notify them. Both the issuer and the recipient can download/view the validated invoice from the central platform in real time. This means no physical paper or even email PDF needs to be sent – the system itself delivers the invoice to the buyer’s account once it’s cleared by PRO. [snitechnology.net]
    This model is very similar to what countries like Italy, Mexico, and Turkey use, where an invoice is only legally valid after clearance by the tax authority. North Macedonia’s e-Faktura is a CTC system ensuring the tax authority gets each invoice’s details immediately. Key implication: Invoice data is reported to the authorities at the same time the invoice is issued (in fact, the invoice must be routed through the authority first). This real-time reporting is intended to drastically improve VAT compliance and allow the government to monitor transactions as they happen. [fiscal-req…ements.com], [fiscal-req…ements.com] [fiscal-req…ements.com]
  • Transactions Covered (Domestic vs Import/Export): The reform is primarily aimed at domestic transactions. The PRO has described it as covering “all non-cash invoicing” in the country. In practical terms, domestic B2B and B2G supplies will all require e-invoices. For B2C, as noted, if an invoice (as opposed to just a receipt) is issued, that invoice would likewise go through e-Faktura. Cash sales to consumers that are recorded via fiscal cash registers likely remain under the separate fiscal receipt system (which already reports retail transactions in real time to PRO), so small cash B2C sales won’t individually be invoiced through e-Faktura. However, “cashless” B2C transactions – for example an online sale to a consumer or a service to a private individual where payment is via bank and an invoice is generated – would fall under “non-cash invoices” and thus be subject to the electronic system. [rtcsuite.com] [spaceinvoices.com]
    For cross-border transactions: although detailed rules are still to be confirmed, invoices for exports and other cross-border supplies are expected to be reported as well. The system design includes integration with customs and other databases, indicating that when a North Macedonian business issues an invoice to an overseas customer, that invoice should also be sent to the PRO platform (likely marked appropriately as an export). This mirrors how other clearance systems handle exports (e.g., Italy requires even B2C or export invoices to be submitted to the clearance platform, though the transmission to the foreign buyer is separate). Similarly, import of goods doesn’t involve an invoice issued by a local taxpayer (the supplier is foreign), so e-Faktura doesn’t directly cover supplier invoices from abroad; those are handled via customs import VAT procedures. But if a foreign supplier is registered in North Macedonia and issuing a local invoice (say for services or via a local VAT agent), then that invoice must be electronic. In summary, domestic B2B/B2G invoices are mandatorily electronic; cross-border outbound invoices will be captured via e-reporting to PRO (likely using the same platform), ensuring the tax authority has data on all sales, domestic or international. (North Macedonia is aligning with EU VAT rules – for instance, adopting an “MK” prefix VAT number format from 2026 – so it’s ensuring no gap in reporting of cross-border invoices.) [eurofast.eu] [fiscal-req…ements.com]
  • E-Reporting (for transactions not covered by e-invoices): The term “e-reporting” typically refers to the requirement to electronically report transaction data to the tax authority in cases where an actual e-invoice exchange through the platform is not required. In North Macedonia’s plan, because most B2B invoices will be cleared through e-Faktura in real time, those are automatically reported (no separate report needed – the invoice submission is the reporting). However, for certain transactions that might not go through the clearance platform, the authorities may implement a complementary e-reporting obligation. This would be analogous to systems in countries like France, where B2B invoices go through clearance and B2C/cross-border invoices are periodically reported. North Macedonia’s officials have not yet outlined a distinct e-reporting process, but it’s likely that any invoice that isn’t cleared (for example, a simplified invoice or a consumer receipt) would still need its data sent to the tax authority electronically. The mechanism for e-reporting would presumably be via the same centralized system or an aligned portal: taxpayers could upload or transmit the required details of such transactions. The timelines for transmitting e-reporting data have not been explicitly published as of the latest updates. Given the real-time ethos of the reform, one can expect that if e-reporting of certain invoices (like cross-border sales or B2C sales above a threshold) is required, it may need to be done promptly – possibly within days of invoice issuance or by the next VAT period. In absence of official specifics, the safest assumption for businesses is that all invoice data needs to reach PRO either immediately or very shortly after issuance. Notably, some countries allow a short grace (e.g. up to 5 days) for reporting B2C invoices, but North Macedonia’s law has yet to specify this. We do know the system is designed for instantaneous communication; even the term “real-time reporting” is used by the PRO. Thus, if and when e-reporting (non-clearance reporting) is instituted, it will likely leverage the same real-time platform, or require submission via a dedicated interface within a tight deadline. (Taxpayers should watch for specific sub-legal acts or guidelines from the PRO on how to handle any transactions not automatically cleared. As of early 2026, the focus has been on clearance of invoices through e-Faktura, with further reporting rules to be clarified.)
  • Technical Format of E-Invoices: Invoices must be issued in a structured electronic format (machine-readable data file), not PDF scans or paper. North Macedonia’s PRO has published technical specifications and standards for the e-Faktura format (as part of the project documentation). Although the exact format name isn’t explicitly stated in summaries, it is likely an XML-based schema aligning with international standards (possibly a UBL 2.x or UN/CEFACT format, given the goal of interoperability). The key is that the invoice data is standardized and contains all legally required fields (seller info, buyer info, tax IDs, addresses, invoice number and date, description of goods/services, quantities, tax base, VAT amount, etc.). Each e-invoice will also carry a digital signature to ensure authenticity and integrity – businesses will use a digital certificate to sign the invoices they send to the system. The PRO’s platform then validates the signature and contents. Once accepted, the platform affixes its own unique identifier (the eID code) to the invoice, which becomes part of the official invoice data. The final, cleared invoice is an electronic record (likely an XML with a status/approval code) that is accessible to both transacting parties. [eurofast.eu] [grantthornton.global] [snitechnology.net]
    Format specifics: The PRO has been working on an “e-Faktura XML schema” – this was part of the *“Definition of standards” phase of implementation. By mid-2025, technical documentation (likely including the schema definition and API specs) was made available to businesses and software developers. The e-invoice format is standardized for all – meaning whether you use your own ERP integration or the web portal, the data structure that gets transmitted to the government is the same. The format is expected to be broadly compatible with the European e-invoicing standard (EN16931 syntax) to ease future interoperability, though North Macedonia’s system is a clearance model (which the EU standard itself doesn’t require). In any case, businesses will either output invoices in the required XML format directly from their systems or input the invoice data into the PRO’s web portal which then creates the structured invoice. PDFs or scans are not acceptable as the legal invoice; however, businesses may still provide a human-readable copy to their buyers (for example, the system might generate a PDF rendering for convenience), but the official invoice is the electronic file in the PRO system. [sovos.com] [Управа за…Македонија]
  • Transmission Method: Data transmission will be primarily via the internet through two channels:
    • Machine-to-machine via API – Companies with their own invoicing software or ERPs can integrate with the PRO platform’s API. The PRO has provided technical APIs (Application Programming Interfaces) that allow systems to send invoice data automatically and receive responses (validation results, invoice IDs, etc.). This is ideal for medium and large companies that issue many invoices; their software can be configured to talk directly to the government system in real time. In the pilot, one focus was testing these API integrations with volunteer businesses. [Управа за…Македонија]
    • Web Portal / Web Application – For smaller businesses or those without IT systems, the PRO will provide a free web-based e-invoicing application. The plan is to have a portal available by end of Q1 2026 for companies that don’t have their own software. Through this portal (or a desktop application), users can manually input invoice details into an online form and submit it. The system will then generate the structured invoice and process it through the platform (issuing the eID, etc.) just as with an API-submitted invoice. This approach requires only a web browser (plus a digital certificate for signing). It ensures even micro-businesses can comply without purchasing new software. [snitechnology.net] [eurofast.eu]
    Data transmission timing: Every invoice must be transmitted at the moment of issuance. In fact, legally, an invoice will be considered issued only once it has been cleared and returned with an ID. This means companies need to send the invoice data to PRO essentially in real time – either instantly via API as the invoice is created, or by entering it in the portal when they are ready to issue it. The system is available 24/7 to receive invoices. There is presumably a contingency for any downtime (e.g., if the platform is temporarily unavailable, there will likely be a procedure to queue and send as soon as possible), but on the whole, “real-time” is the rule – invoice data goes to the authority immediately. Once mandatory phase starts, the due date for transmitting an invoice’s data is effectively immediately upon invoice creation. There is no allowance to batch and send later for in-scope invoices; sending later would mean the invoice wasn’t properly issued in the first place. [rtcsuite.com]
  • Data Content to be Reported: The data points that must be provided to the tax authorities are essentially the full invoice details. This includes: seller’s name, address and tax number (VAT ID); buyer’s name and address (and VAT number if applicable); the date of issuance; invoice number; description of goods or services supplied; quantity and unit price; taxable amount; applicable VAT rate and VAT amount; any exemptions or reverse-charge notes if applicable; and the total amount including VAT. These are the same fields required by the VAT Law for any valid invoice. Because invoices are in a structured electronic form, all these elements are sent as discrete data fields (rather than just one text or PDF). The system will also automatically attach timing information (submission timestamp, etc.) and, after validation, the unique invoice ID and a verification code. If the transaction falls under special VAT treatments (e.g. reverse charge, or if it’s an export with 0% VAT), the invoice data must include the relevant notation as per law (the format likely has specific fields or codes to denote such cases). In summary, the authorities will receive all the information typically on an invoice, plus metadata from the clearance process, for every invoice. There is no separate, additional list of “data elements” beyond what an invoice normally has – it’s just that now this data is in the government’s database immediately. [grantthornton.global] [fiscal-req…ements.com], [grantthornton.global]
  • Deadlines for Data Transmission: As noted, for invoices subject to clearance, the “deadline” is immediate – they must be cleared before being considered issued. Therefore, the concept of a later reporting deadline for these does not apply (no invoice should exist outside the system waiting to be reported). For any transactions that might not go through clearance (if e-reporting obligations are introduced for, say, certain B2C or cross-border invoices), the law would specify a timeframe – possibly daily or within a few days of issuance. Many EU countries with e-reporting require either near-real-time submission or periodic uploads (e.g. France will require B2C invoice data to be reported by the next business day or so). North Macedonia’s documentation so far emphasizes real-time or “immediate” transmission. We can infer that any supplementary reporting will also be expected very promptly. At the latest, data would be due by the VAT return period, but it’s more likely to be required much sooner (to maximize compliance benefits). Until the final rulebook is out, businesses should err on the side of assuming “as soon as possible, ideally instantly” for any invoice data submission. [rtcsuite.com]
  • Penalties for Non-Compliance: North Macedonia’s Law on VAT (and related tax laws) provides a framework of penalties for failing to comply with invoicing and reporting obligations. These will naturally extend to the e-invoicing requirements. Key points on penalties:
    • Failure to issue invoices through the system when required will be equivalent to failing to issue a proper invoice or failing to keep records. The law already stipulates that not issuing an invoice or not keeping the required invoice records for the prescribed period is an offense. Fines for such violations range depending on the size of the taxpayer: roughly from about €300 up to €10,000 (in Macedonian Denar equivalent) for companies, with larger companies facing higher fines in that range. These fines are per offense and could apply, for example, if a business is caught issuing manual invoices outside the platform after the mandate, or if they neglect to report invoices altogether. [grantthornton.global], [grantthornton.global]
    • Failure to transmit data on time – given the clearance model, if a company tries to bypass the system, the invoice simply isn’t legally valid. So the main penalty is for not having a proper invoice (plus potential VAT evasion if the sale isn’t reported). If e-reporting (for non-cleared invoices) is required and one fails to submit that data in time, it would similarly fall under failing to submit tax-relevant data, punishable by fines.
    • Incorrect or inaccurate data: Submitting false information (e.g., mis-stating amounts) would violate existing VAT filing rules. The authorities will be cross-checking e-invoice data with VAT returns; discrepancies could trigger penalties or audits. In serious cases (like deliberate tax evasion through mis-reporting), North Macedonia law even allows criminal charges – for instance, a responsible person who files false VAT information to gain unlawful benefit can face 6 months to 5 years imprisonment under certain circumstances. While that is an extreme scenario, it underscores that compliance is taken seriously. [grantthornton.global]
    • Grace period for penalties: As mentioned, no formal grace period has been announced. Once mandatory, a business not using e-Faktura is essentially non-compliant with invoicing regulations. We might see some leniency in initial enforcement (e.g., warnings before fines) as companies adjust, but one should not count on avoiding penalties if they ignore the mandate. The PRO has been actively encouraging early adoption to prevent any last-minute issues.
    • Specific new penalties: It’s possible that new penalty provisions will be introduced in the bylaws specifically for breaches of e-invoicing procedures (for example, fines for not using the platform could be explicitly listed). As of the latest info, the general penalty clauses in the VAT Law (as noted above) will cover most scenarios. In addition, failing to register for VAT or to file VAT returns correctly also carries fines (as detailed in the law) – all of which will work in tandem with the new system (e.g., if one tries to stay unregistered to avoid e-invoicing, they’d violate registration rules and be fined accordingly). [grantthornton.global]
    In short, non-compliance can lead to substantial fines, scaled by company size, and persistent or severe violations could even attract higher sanctions. The government’s intent is to achieve near-total compliance, so enforcement will likely be strict once the system is in place.
  • Archiving Requirements and Retention Period: Taxpayers must archive e-invoices in accordance with existing record-keeping rules. North Macedonia’s law requires that all invoices (and accounting documents) be retained for a certain period for VAT control purposes. Although the new e-Faktura system will store the invoices in the government database, businesses are still responsible for keeping their invoice records (in electronic form) in an “authentic and legible” format for the required retention period. The Value Added Tax Law specifies a time period during which invoices must be kept (and made available to the tax authorities on request). Failure to keep invoices for that period is an offense subject to fines. Officially, the retention period under North Macedonian law is not stated in the summaries, but it is commonly five or ten years (many countries align with a 10-year retention for VAT records). It would be safest to assume 10 years retention for invoices, unless local law says otherwise. (This typically counts from the end of the year of issuance.) Businesses should consult the Macedonian VAT Law or local advisors for the exact number of years – but either way, long-term archiving is mandatory. [grantthornton.global]
    Archiving format: Invoices must be stored in a way that guarantees their authenticity, integrity, and readability over the entire retention period. Since e-invoices are digitally signed XMLs, companies should archive the original digital invoice file and ensure the signature and contents remain verifiable (this usually means keeping the associated metadata or using an acceptable archiving system). The PRO’s system will have a record, but companies cannot rely on the tax authority to serve as their only archive. Each company should keep its own copies of all issued and received e-invoices (for example, downloading them from the platform or storing the outputs from their ERP). E-archiving should be done in a system or format that prevents alteration and allows retrieval if an audit occurs. North Macedonia is likely to follow EU practices here, meaning an invoice kept electronically must remain accessible and unchanged, with the digital signature to prove integrity. There may be requirements to inform the tax authority if the archive is kept abroad, but generally, keeping the data on servers in North Macedonia or in compliance with local guidelines is advisable.
    In summary, invoices will need to be kept for years after issuance, and electronic invoices should be archived electronically in a secure, audit-proof manner. The e-Faktura initiative doesn’t remove the obligation of taxpayers to maintain records – it just adds that the tax authority also has a copy. Companies should update their record-keeping policies to ensure that the electronic invoices (and their clearance receipts) are saved and backed up for the legally required duration.
  • Pre-Filled VAT Returns: At present, North Macedonia does not offer pre-filled (pre-populated) VAT returns for taxpayers, and the current e-invoicing project has no announced feature to introduce pre-filled VAT declarations. Taxpayers will still be responsible for compiling their periodic VAT returns (monthly or quarterly) and submitting them by the due date, as before. The difference is that with e-Faktura, the tax office has all the transactional data to cross-verify those returns. While this real-time data collection theoretically paves the way for things like pre-prepared VAT calculations or at least easier audits, there has been no indication from the PRO or Ministry of Finance that pre-populated VAT returns (as seen in some other countries) will be implemented at the go-live. The focus is on improving compliance and accuracy – which indirectly makes the VAT return process more straightforward (since businesses can use the e-invoice data for their VAT ledgers, and the PRO can more easily detect discrepancies). But when you file a VAT return in North Macedonia, you will still need to do it manually using your transaction data. In the future, it’s possible that with all invoice data in their system, the tax authority could introduce summary reports or even draft returns for confirmation (this is something envisioned in the EU’s “VAT in the Digital Age” initiative). However, as of the latest information (2025–2026), North Macedonia has not implemented pre-filled VAT returns. Each taxpayer must ensure their VAT return is correctly prepared from their records. The e-Faktura portal might eventually offer downloadable reports of all invoices issued/received in a period, which could help taxpayers compile their VAT figures, but they will still need to formally submit the VAT return. Also note: with the mandate, the PRO will have the capability to match sales and purchase invoices between domestic traders, which should improve the accuracy of input tax claims and might reduce the need for certain manual listings (for instance, large taxpayers currently attach lists of invoices with their return – such requirements could be phased out once everything is in the system). But again, no automatic VAT return filing by the authority is in place. Taxpayers should continue to file returns as per usual (by the 25th of the month following the tax period, as per law) and use the e-invoice data to ensure those returns are accurate. [grantthornton.global]
  • Legal and Regulatory References: The e-invoicing reform is backed by legal changes in North Macedonia:
    • The Government presented and approved the e-Faktura concept in mid-2025, and amendments to the Law on VAT and related bylaws have been prepared to enable mandatory e-invoicing. These were published in the Official Gazette of the Republic of North Macedonia towards the end of 2025 (aligning with the January 2026 effective date for some of the VAT law changes). Key legal updates include recognition of electronic invoices as the legal invoice format, provisions requiring taxpayers to use the central invoicing system, and penalty provisions for non-compliance. The VAT Rulebook was also updated (the Ministry of Finance issued a new Rulebook on VAT application in 2025) to incorporate e-invoice content and format requirements in line with the system. [fiscal-req…ements.com], [fiscal-req…ements.com] [fiscal-req…ements.com]
    • Official resources: The Public Revenue Office (UJP) has information available on its website. Notably, a press release on 5 January 2026 announced the start of the pilot phase and outlined the steps for businesses to participate. Technical documentation (API specs, data format definitions) is provided on the PRO’s dedicated e-invoicing wiki portal (efakturawiki.ujp.gov.mk). Through that site, companies can access guidelines, the test platform, and other support materials (registration on the e-UJP portal is required for full access). The PRO is also expected to publish user manuals for the web portal and any client software. [Управа за…Македонија]
    • Regulations: As the system progresses, formal rulebooks or decisions will clarify details like archiving rules for e-invoices and any e-reporting obligations. These will be official documents likely published in the Official Gazette or on the Ministry of Finance/PRO websites.
    • For reference, one can consult Official Gazette of RNM No. 274/2025 (hypothetical number for illustration) which might contain the VAT Law amendments that introduce Article for e-invoicing. Additionally, the Law on Electronic Document and Electronic Signature in North Macedonia provides the legal basis for accepting digitally signed invoices as equivalent to paper.
    In essence, the move to mandatory e-invoicing is grounded in newly adopted legislation and detailed technical regulations. Taxpayers should review the official laws and releases: the Public Revenue Office’s announcements, the Ministry of Finance’s statements, and the updated VAT Law provisions are the authoritative sources on this mandate. Links to some key resources include: [Управа за…Македонија]
    • The Public Revenue Office’s e-Faktura information page (PRO official site) – which contains news and documents (currently primarily in Macedonian). [Управа за…Македонија]
    • The technical documentation portal (eFaktura Wiki) hosted by UJP for implementers. [Управа за…Македонија]
    • The text of the Law on VAT as amended in 2025 – available through the Official Gazette or the Ministry of Finance’s website (in Macedonian; look for provisions on invoice issuance and electronic invoicing).
    • Any official rulebook or decision titled “Rulebook on the application of the e-invoicing system” (if issued).
    • Additionally, international tax bulletins (like the KPMG TaxNewsFlash and Big4 newsletters cited in late 2025) summarize these legal changes (e.g., KPMG’s news flash noted the Q3 2026 mandatory date). [kpmg.com]
In conclusion, North Macedonia’s e-invoicing (and e-reporting) framework, effective 2026, will require virtually all VAT invoices to be issued electronically through a central government platform in real time. The system covers B2B and B2G transactions (and effectively captures B2C data via existing mechanisms), with a pilot underway and a hard mandate by October 2026. Invoices will need to be in a specified electronic format (likely XML), digitally signed, and cleared by the tax authority before they are valid. The data from these invoices is immediately available to the tax authorities for VAT control, thereby reducing fraud and improving compliance. No separate grace period after go-live is planned, so businesses must prepare now: integrate their systems or plan to use the web portal, obtain the necessary digital certificates, and possibly update their accounting processes. They must also continue to maintain archives of invoices (in electronic form) for the legally required retention period and comply with all VAT reporting obligations (VAT returns will still be filed by the taxpayer, not automatically generated).
The reform is a major step toward a modern, digital tax administration in North Macedonia, aligning with trends in the region and the EU’s broader digital VAT initiatives. Official government publications and resources (PRO announcements, the Official Gazette edits to tax laws) have full details, and businesses are advised to consult these and engage with tax professionals to ensure full compliance by the 2026 deadline. This will include adapting IT systems, training staff on the new invoicing procedures, and possibly using the provided pilot environment to test their readiness. Once in force, the e-Faktura system should bring greater transparency and ease of tax enforcement, while also streamlining invoice processes for companies (e.g., no need to print/mail invoices, faster processing). But importantly, non-compliance (not using the e-invoice system or failing to report invoices) will carry penalties, so all in-scope businesses — including foreign companies registered for VAT in North Macedonia — should treat the transition as mandatory and imminent. [sovos.com], [eurofast.eu] [fiscal-req…ements.com], [grantthornton.global]
Sources & References:
These sources provide detailed insights into the scope and requirements of North Macedonia’s e-invoicing/e-reporting mandate and have been used to compile the above overview. Businesses should review the official documentation and seek professional advice to ensure all specific obligations (like obtaining digital certificates, using the portal, and storage of e-invoices) are correctly met in line with the latest regulations.
  • Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
  • Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE

 

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