Financial Glossary

Business and tax terms used in Macedonia

Business Entities

DOOEL - Single-member Limited Liability Company: The most common form of business entity in Macedonia with one owner. The founder is liable up to the founding capital contribution. Minimum founding capital is 5,000 EUR.
DOO - Limited Liability Company: A business entity with two or more owners (partners). Each partner is liable up to the amount of their contribution. Decisions are made by majority vote at the assembly.
AD - Joint-Stock Company: A business entity whose capital is divided into shares. Suitable for larger enterprises wanting to attract investors. Minimum founding capital is 25,000 EUR.
TP - Sole Trader: A natural person conducting business in their own name and on their own account. Liable with all personal assets. Simpler registration, but greater personal risk.
EMBS - Unique Entity Registration Number: A 7-digit registration number assigned by the Central Registry when a company is founded. Identifies the business entity and is different from the tax number (EDB).
Central Registry: A state institution where all business entities in Macedonia are registered. Issues EMBS, stores data on founders, managers and annual reports.

VAT - Value Added Tax (DDV): An indirect tax calculated at each stage of the sales chain. Standard rate 18%, reduced rate 5%. The end consumer bears it, but businesses collect and pay it to PRO.
EDB - Unique Tax Number: A 13-digit number assigned by the Public Revenue Office (PRO) that identifies each taxpayer. A mandatory field on every invoice and tax return.
VAT Taxpayer: A business entity registered for VAT at PRO. Registration is required when annual turnover exceeds 1,000,000 MKD (approximately 16,000 EUR). Voluntary registration is possible below this threshold.
Input VAT (prior tax): VAT paid on purchases (incoming invoices). The VAT taxpayer has the right to deduct it from output VAT. After October 1, 2026, deductions are only possible for e-invoices.
Output VAT: VAT calculated on sales (outgoing invoices). The difference between output and input VAT is paid to PRO monthly.
VAT Return: A monthly or quarterly return filed with PRO declaring all incoming and outgoing invoices and calculating the VAT payment obligation.
Income Tax: Tax paid on personal income (salary, fees, dividends). Rate of 10% for income up to 1,200,000 MKD per year, 18% above that amount.

Invoice: A business document confirming the completion of a transaction. Contains data about the seller, buyer, items, quantities, prices and VAT.
Credit Note: A correction document that reduces the value of a previously issued invoice. Used when returning goods, applying discounts or correcting errors.
Pro-forma Invoice: A preliminary invoice or quote that has no legal validity as a tax document. Used to inform the buyer about the price before invoicing.
Fiscal Receipt: A receipt issued by a fiscal device when selling to end consumers (B2C). Different from e-invoice which is for B2B transactions.
Tax Base: The amount on which VAT is calculated. Usually the net price of the product/service without VAT.
Total Amount: The final invoice amount including the tax base and VAT. The amount the buyer needs to pay.

UBL 2.1 - Universal Business Language: An international XML standard for electronic business documents (OASIS). Defines the format of e-invoices, orders and other documents. The Macedonian e-Invoice system uses UBL 2.1.
XAdES - XML Advanced Electronic Signatures: A standard for digitally signing XML documents. Ensures the integrity, authenticity and non-repudiation of the signature. Two levels: QES and AdES.
EN 16931: A European standard for the semantic model of electronic invoices. Defines what information an e-invoice must contain. The Macedonian system is aligned with this standard.
Clearance Model: An e-invoicing model where each invoice must be approved by the tax authority (PRO) before it becomes legally valid. Macedonia uses this model.
QES - Qualified Electronic Signature: The most secure type of digital signature, legally equivalent to a handwritten signature. Requires a USB hardware token with a certificate issued by an authorized provider (KIBS, Telekom).
AdES - Advanced Electronic Signature: A digital signature using a software certificate (P12 file). Easier to use than QES as it does not require additional hardware.
PKCS#11: A cryptographic interface (API) for communicating with USB hardware tokens. denar.mkd Signer uses it to read the private key and sign invoices.
JWS - JSON Web Signature: A format for digitally signed data (RFC 7515). The e-invoice in UBL XML format is signed as JWS before being sent to PRO.

Exchange Rate List: A daily list of foreign exchange rates published by the National Bank (NBRM). Contains the buying, middle and selling rates of foreign currencies against the denar.
NBRM - National Bank of the Republic of Macedonia: The central bank of the country. Determines monetary policy, issues the denar and publishes the daily exchange rate list.
Denar (MKD): The official currency of Macedonia. International code MKD. Fixed rate against EUR (approximately 61.5 MKD for 1 EUR). All domestic invoices are in denars.
Foreign Exchange Rates: The ratio between the value of the denar and foreign currencies. Important for invoicing in foreign currency, where the middle rate from the exchange rate list is used.
Accounting Firm: A company or person that keeps accounts for other business entities. In denar.mkd, the accountant can have access to client companies with the "accountant" role.

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