Tax Alert - Plan to introduce VAT on debris, waste, wreckage and spoilage
02/03/23
March, 2023
There are proposed amendments to the Law on Value Added Tax currently in Parliamentary procedure. With the proposed amendments to the VAT Law there will be VAT on debris, waste, wreckage, and spoilage of goods.
VAT will be applied to the amount of cost of debris, waste, wreckage, and spoilage of goods if the following conditions are met:
if the amount of the cost is over the prescribed normative determined for the relevant industry, and
If these did not occur as a result of unavoidable event or force majeure.
The normative amounts of debris, waste, wreckage, and spoilage of goods and separate products for tax purposes are determined by industry in a separate Rulebook.
For those industrial branches that are not included in the Rulebook, the costs for tax purposes cannot deviate from the usual amounts that arise for business activities of the same or similar nature. In the absence of legal regulation, taxpayers will have to independently determine the amounts that are usual for their business with an internal act. Apart from VAT, these internally determined amounts will also have an impact on Corporate Income Tax taxation.
These provisions will start to apply from the date of publication of the changes in the Official Gazette.
How can we help you?
PwC North Macedonia can help you with:
Assistance and advice in relation to the calculation of normative amounts of debris, waste, wreckage, and spoilage according to the applicable Rulebook.
Assistance with preparation of internal acts for normative amounts of debris, waste, wreckage, and spoilage.
Analysis of the taxation of these costs in other jurisdictions (best practices and tax regulations for the relevant industry).
For more details please refer to your usual contact within PwC or the persons indicated below:
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Miroslav Marchev
Partner, Tax and Legal Services
Mobile: +389 70 270 177
E-mail: miroslav.marchev@pwc.com
Eli Bocevska Grueska
Senior Tax Manager
Mob: + 389 72 307 510
E-mail: eli.bocevska.grueska@pwc.com
Ana Shajnoska Georgijevska
Senior Tax Manager
Mobile: + 389 72 307 509
E-mail: ana.shajnoska@pwc.com
