In the Official Gazette of the Republic of North Macedonia No. 96/19 of 17.05.2019 an Authentic Interpretation of Article 14 paragraph 3 points 1 and 5 of the Law on Value Added Tax was published.
Namely, the Article 14 paragraph 3 of the the Law on Value Added Tax reads as follows:
“(3) As an exception to paragraph 1 of this Article, the place wherein the recipient of the service has a real head office or a subsidiary wherefore the service is actually provided shall be deemed to be the place of supply of service, and provided that such place does not exist, its permanent place of residence or temporary place of residence, for the following services:
1. services in the field of advertising and public relations;
2. banking and financial services and insurance and re-insurance services, except renting safety-deposit boxes;
3. undertaking an obligation for partial or complete sustaining from performing a certain activity, or bearing a certain activity or condition;
4. legal, economic and technical consulting, especially the activities of the notaries, lawyers, auditors, tax consultants, accountants and engineers, as well as similar activities;
5. services for electronic data processing and giving information, including know-how and expertise;
6. personnel provision;
7. renting movable tangible property, except all types of means of transportation;
8. telecommunication services;
9. transfer and assignment of copyrights, patents, licenses, trademarks and similar rights;
10. intermediation services related to the services referred to in this paragraph; and
11. Provision of access to the electrical energy network in the case of congestion of the respective allocation unit when allocating to the cross-border transmission capacities of the interconnection transmission lines.”.
According to the given Authentic interpretation, the provision of Article 14 paragraph (3) point 1, should be interpreted in the manner that services in the field of advertising and public relations cover the following services as well: customer care services directed towards improvement of the sale, digital marketing, potential client targeting, creation of promotional materials, social media management (creation, support and strategy implementation) and the provision of Article 14 paragraph (3) point 5, should be interpreted in the manner that services for electronic data processing and giving information, including know-how and expertise cover the following services as well: technical support for software setting, technical support for hardware setting, remote automated technical conditions, interventions in databases: entry, addition, alteration, management, up-dating of website data, background administrative operation, creation of reports.
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Source of the published regulations: www.slvesnik.com.mk