Skopje, 9 October 2025 (MIA) — The government has adopted amendments to the Law on Value Added Tax to eliminate the widely used VAT exemption for international shipments worth EUR 22 or less.

According to the Ministry of Finance in a press release, the elimination of the VAT exemption for small-item shipments ordered via foreign online platforms will curb online shopping and encourage shoppers to shop local.

The amendments, which have already been sent to Parliament for approval, are intended to boost local manufacturing and retail.

They are expected to "redirect into the local economy some 4,000,000 denars a month, the amount of turnover to foreign online platforms."

"These funds will contribute to the development of local companies, the creation of new jobs and the payment of higher salaries to employees," the release said.

The Ministry of Finance also said the changes would help reduce the shadow economy, pointing to cases of imports of tax-exempt goods that were subsequently sold on the domestic market.

"With this change, the state sends a clear signal of support for domestic companies that create added value and employ the country's citizens," the release said. mr/