7.6% February inflation prompts temporary VAT until end May 2022; electricity VAT cut till Jun 2023
North Macedonia experienced its highest inflation in almost fifteen years. This was up from 6.7% in January. Transport reached 19.4% annual inflation. Other European cuts on VAT on fuel and foods have been passed or are under review.
- PETROL The European country of North Macedonia has cut VAT and duties on petroleum and food supplies. It has also rolled over a VAT cut on electricity. The Value Added Tax rate on petrol (and diesel, unleaded gasoline, gas oil, liquefied petroleum gas (LPG), and methane) has been cut from the standard rate of 18% to the reduced rate of 10%. Import VAT on gas and electricity has been withdrawn. This will apply between 12 March and 31 May 2022.
- FOOD:: The government will remove 5% VAT on sales of bread, sugar, flour, edible sunflower oil, milk, meat, rice and eggs. This will apply between 17 March and 31 May 2022.
- ELECTRICITY: The temporary rate of 5% will be extended until 31 December 2022. It has been scheduled to end on 30 June 2022. For the following six months until 30 June 2023, it will be set at 10%. It will then return to the standard rate.
Get our global VAT and GST free news emails, sign-up here.