Exchange Rate - Invoicing in foreign currency
The exchange rate is the ratio of the Macedonian denar (MKD) value to a foreign currency. For businesses invoicing in EUR or USD, proper exchange rate usage is key for accounting and VAT.
Definition
The exchange rate is the ratio of the Macedonian denar (MKD) value to a foreign currency. For businesses invoicing in EUR or USD, proper exchange rate usage is key for accounting and VAT.
Details
The denar is de facto pegged to EUR (~61.5 MKD/EUR). NBRSM's middle rate is used for accounting purposes. Exchange differences (positive/negative) are recorded as financial revenue/expense. VAT is always calculated in MKD at the rate on the event date.
Example
You invoice a client in Germany: 1,000 EUR × rate 61.5 = 61,500 MKD VAT base. If the rate at collection is 61.7 → positive exchange difference 200 MKD (financial revenue).