North Macedonia VAT refunds to businesses decline for second consecutive year

VAT refunds to businesses in North Macedonia have decreased for the second year in a row, according to the latest annual report from the Public Revenue Directorate. In the period from January to December 2025, VAT refunds fell by 1,129,997,960 denars, or 3.29 percent, compared to the same period in 2024.

Total VAT refunds issued to companies in 2025 amounted to 540,238,172 euros, down from 558,612,122 euros in 2024. When comparing 2025 to 2023, the total difference in refunds reaches approximately 90 million euros.

While refunds have declined, the Public Revenue Directorate reported an increase in tax collections across all VAT categories, including domestic sales, imports, and donations. The Ministry of Finance previously noted that additional controls and investigations into large-scale VAT refund abuses were being conducted on high-risk companies, which contributed to delays in fund returns. These refunds are critical for business liquidity, affecting a company's ability to cover wages, suppliers, and loans.