Effective use and enjoyment. To avoid instances of non-taxation or double taxation, jurisdictions can apply “use and enjoyment” rules that allow a service that is “used and enjoyed” in the jurisdiction to be taxed or prevent a service that is “used and enjoyed” outside the jurisdiction from being taxed. If a service is taxed in the jurisdiction under the “use and enjoyment” provisions, a non-established supplier of the service may be required to register for VAT in every jurisdiction where it has customers that are not taxable persons. In Moldova, no services are subject to the “use and enjoyment” provisions.
Transfer of a going concern. Transfer of going concern rules do not apply in Moldova. As such, VAT applies to all sales of a business or part of a business capable of separate operation including assets.
Transactions between related parties. In Moldova, there are no specific rules that indicate the value for VAT purposes for transactions between related parties.
C. Who is liable
A taxable person is any person or legal entity that is registered for VAT in Moldova. An entity that has a fixed place of business or carries out commercial or professional operations on a regular basis in Moldova must register for VAT.
The mandatory VAT registration threshold is turnover or imported services of MDL1.2 million in a period of 12 consecutive months.
Exemption from registration. The VAT law in Moldova does not contain any provision for exemption from registration.
Voluntary registration and small businesses. Voluntary VAT registration is allowed for persons planning to perform taxable supplies of goods and services, irrespective of their turnover value. Group registration. Group VAT registration is not allowed in Moldova.
Fixed establishment. Moldova has no legal definition of a fixed establishment for VAT purposes. However, the direct tax rules for a permanent establishment (PE) also apply for VAT. A PE, per the Moldovan Tax Code provisions, is a fixed place of business through which a nonresident carries out all or a part of its business activity in Moldova, either directly or through an agent with dependent status, including:
a) A place of management, a subsidiary, an office, a factory, a store, a workshop and a mine, an oil or gas well, a quarry or any other place natural resource extraction or cultivation of agricultural crops
b) A building site, a construction, assembly or installation project or technical supervisory activities, maintenance and operation of the related equipment, only if such site, project or activities continue for a period longer than six months
c) Sale of goods from warehouses in Moldova that belong to the nonresidents or are rented by it
d) Provision of other services, other activities, over a period longer than three months, except for preparatory, auxiliary or of other character activities that do no suppose creation of a PE (i.e., as defined in the list of exceptions mentioned in points (i) to (vii) below), as well as the work performed under an employment agreement and independent professional activity, if the tax legislation does not provide for other rules
e) Carrying out in Moldova of any of the activities listed in points a) to d) above, by an agent with dependent status or maintenance by this agent in Moldova of a stock of goods or products that are delivered in the name of a nonresident
By exception, a PE is not deemed to be created where a nonresident carries out in Moldova preparatory, auxiliary or of other character activities in the absence of the PE criteria listed above. Particularly, the following activities should be treated as preparatory, auxiliary or of other nature: (i) Use of facilities solely for the purpose of storage or display of products or goods belonging to the nonresident
Changes to VAT registration details. There is no specific procedure in relation to notifying the tax authorities for changes in a taxable persons’ VAT registration details. If any changes occur (such as the company name, address, administrator, etc.), this is done automatically through the Public Services Agency (Trade Register), which exchanges information with the tax authorities, so VAT records are also updated.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a VAT rate. The VAT rates are:
• Standard rate: 20%
• Reduced rates: 8%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides a reduced rate, the zero-rate or an exemption.
Some supplies are classified as exempt from VAT with the right to deduction, known as exempt with credit (i.e., zero-rated), which means that no VAT is chargeable, but the supplier may recover the related input tax.
Examples of goods and services taxable at 0% (i.e., exempt with credit)
• Exports of goods and related services
• International transport of persons and freight
• Electric and thermal power
• Supplies of water to the public
Examples of goods and services taxable at 8%
• Bakery products
• Dairy products
• Agricultural products
• Drugs
• Natural and liquefied gas produced and imported in Moldova
• Phytotechnics and horticulture products in natural form, zootechnical products in natural form, live and slaughtered produced and/or delivered within the territory of Moldova
• Beet sugar produced, imported and/or delivered within the territory of Moldova
• HORECA industry supplies (hotel, restaurants and café services). This reduced VAT rate applies to food and/or beverages (excluding the alcoholic products), prepared or unprepared, for human consumption, together with the related services allowing their immediate consumption, provided as part of activities included in Section I of the Moldovan Classifier of Economic Activities, as well as to accommodation services, regardless of the level of comfort (e.g., hotel, apartment-hotel, motel, tourist villa, bungalow, tourist boarding house, rural boarding house, camping, holiday village or holiday camp) that are included in Section I of the Moldovan Classifier of Economic Activities.
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Dwellings
• Land
• Cars (until 31 December 2025)
• Long-term tangible assets contributed into share capital under the special rules approved by the government
supplies can be recovered in line with normal input tax recovery rules. Input tax is deducted in the month in which the goods are acquired.
If the capital goods are used for both taxable and exempt supplies, the partial exemption rules described above shall apply. Where the use of the capital good changes from taxable to exempt, the input tax related to the net book value of the capital good is not allowed for deduction and is reported to costs or expenses.
Refunds. If the amount of input tax recoverable in a monthly period exceeds the amount of output tax payable in that period, the taxable person may request a refund of VAT if the excess VAT results from any of the following:
• Supplies performed from 1 January 2023 by using e-invoicing and/or tax receipts issued by equipment connected to the tax authorities’ electronic sales monitoring system
• Supplies that are exempt from VAT with the right to deduction
• Supplies made by companies that produce and sell bread and dairy products
• Capital investments by business entities registered as taxable persons, except for investments made in certain types of buildings and means of transport
• Capital investments in motor vehicles for passenger transportation
• Overpaid tax
The following special procedure applies if a taxable person requests a VAT refund:
• The taxable person must submit a request to the tax authorities
• Before the repayment is made, the tax authorities perform a special tax audit to ensure that the amount claimed is accurate
In practice, it may be difficult to receive a refund in these circumstances and substantial delays may be experienced.
Pre-registration costs. Input tax incurred on pre-registration costs in Moldova is not recoverable.
Bad debts. If the output tax related to a supply in the VAT return is all or part of it considered, according to the legislation, as a bad debt, the taxable person has the right to adjust the amount of VAT calculated starting with the fiscal period in which the bad debt was detected.
The tax code allows the recovery of VAT on bad debts, subject to the following conditions:
• The liquidated entity has no successor of rights
• The business entity declared insolvent does not have any goods
• The individual who does not perform any business activity, and the farmer or individual entrepreneur does not have, within two years from the day of the appearance of the debt, goods or is insufficient of goods that could be collected in order to extinguish this debt
• The individual has died and there are no more persons obliged by law to honor its obligations
• The individual, including the farmer’s household members or the individual entrepreneur who left its residence, cannot be found during the limitation period established by the civil legislation
• There is a respective act of the court or of the executor (e.g., decision, conclusion or other document provided by the legislation in force) according to which debt collection is not possible
• The debt is up to MDL1,000 with an expired limitation period
Noneconomic activities. Input tax incurred on purchases that are used for noneconomic activities is not recoverable in Moldova.
G. Recovery of VAT by non-established businesses
Input tax incurred by non-established businesses that are not registered for VAT in Moldova is not recoverable.
H. Invoicing
VAT invoices. In general, a taxable person must provide a fiscal invoice for all taxable supplies, except in several circumstances provided for by the Moldovan law. A fiscal invoice is necessary to support a claim for an input tax deduction.
Credit notes. No laws exist with respect to credit notes. The taxable amount of the taxable supply of goods and services, after their supply or payment, can be adjusted if there are supporting documents providing the following conditions are met:
• The amount of the taxable supply, agreed initially, has changed as a result of changing prices
• The taxable supply was returned to the seller, either partially or in the full amount
• The taxable amount of the taxable supply was reduced due to a discount provided
Electronic invoicing. Electronic invoicing is mandatory in Moldova for certain taxable persons.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is mandatory for certain taxable persons in Moldova. There is no threshold beyond which taxable persons are required to adopt electronic invoicing in Moldova. The requirements related to electronic invoicing are the same as those for paper invoicing.
It is mandatory for taxable persons that perform supplies under public procurements, i.e., B2G (except for electricity, heat, natural gas, electronic communications services and communal services supplies), supplies of gasoline and diesel (both B2B and B2C), as well as for the taxable persons who are included by the authorities in the mandatory list of taxable persons required to use e-invoicing (both B2B and B2C). Additionally, there is an obligation to use e-invoices for the supply of goods or services that are made:
• To business entities (B2B) that do not have fiscal relationships with the budgetary system of the Republic of Moldova
• For services related to implementing technical assistance and investment projects
Other taxable persons can use electronic invoicing voluntarily.
Taxable persons who use electronic invoicing should be registered as users of electronic tax services and have digital or electronic signatures issued in accordance with local legislation. An e-invoice must be issued via a specific online platform provided by the tax authorities. The purpose is to streamline the collection of taxes and duties to improve the collection rate of VAT, thus leading to the prevention of tax evasion.
Simplified VAT invoices. Simplified VAT invoicing is not allowed in Moldova. As such, full VAT invoices are required.
Self-billing. Self-billing is not allowed in Moldova.
Proof of exports. VAT is not chargeable on supplies of exported goods. However, to qualify as VAT-free, export supplies must be supported by evidence confirming that the goods have left Moldova. The law provides for a specific list of supporting documents proving the exportation, which vary according to the type of exported goods or services (e.g., customs declarations, invoices, sales agreements).
Foreign currency invoices. Fiscal invoices cannot be issued in a foreign currency in Moldova. All fiscal invoices must be issued in the domestic currency, which is the Moldovan leu (MDL).
Supplies to nontaxable persons. Generally, for retail supplies made by taxable persons to private consumers, no fiscal invoice is required to be issued, unless it is requested by the purchaser.
Records. Each taxable person is obliged to keep track of the entire volume of goods and services delivered, as well as all the goods and services purchased.
In Moldova, examples of what records must be held for VAT purposes include the fiscal invoices related to purchases/deliveries and the generalized record (see below). The fiscal invoices must be recorded in the respective ledgers in the order of their receipt/release. Damaged or canceled fiscal invoices shall be also kept by the business entity. The purchases and sales ledgers shall be prepared and filled by the 25th of the month from the end of the reporting month. The accounting documents are kept by the entity on paper or in electronic form.
For each reporting month, a generalized record must be kept that includes the following:
• Input tax amount on acquired goods and services
• Output tax amount on delivered goods and services
• Adjustments that impact the VAT amount
• The VAT amount to be paid to the budget or the input tax amount to be carried forward
• VAT amount paid to the budget
• The VAT amount to be carried forward to the next fiscal period
• VAT amount subject to be refunded from the budget
In Moldova, VAT books and records must be held within the country. Generally, the taxable person should hold the records at their registered office.
Record retention period. According to the local legislation, the fiscal invoices, as well as the accounting ledgers must be kept for six years.
Electronic archiving. Electronic archiving is not allowed in Moldova. Archiving must be in paper form only. VAT returns, as well as other related registers and supporting documentation, should be printed and kept in hard copy by the taxable persons.
I. Returns and payment
Periodic returns. VAT return periods are generally monthly. The VAT return periods for the provision of digital services by nonresidents to Moldovan individuals are quarterly.
Returns must be filed by the 25th day of the month following the end of the return period.
Periodic payments. Payment in full must be made by the same date as the VAT return deadline, i.e., by the 25th of the month following the end of the return period. The VAT must be paid to the tax authority through bank transfer.
Electronic filing. Electronic filing is mandatory in Moldova for all taxable persons. Taxable persons are obliged to file VAT returns by using a specific online electronic program provided by the local tax authority. The service “Declaraţie electronică” is the tool for creating, verifying and filing tax returns by taxable persons online (via servicii.fisc.md platform). The tool can only be used with electronic signatures issued by accredited centers. The tool also offers the option to upload pre-prepared returns into taxable persons’ accounting programs.
Payments on account. Payments on account are not required in Moldova.
Special schemes. Digital services. A special scheme applies to nonresidents who provide services through electronic networks (i.e., digital services through online marketplaces and platforms) to Moldovan resident individuals, as well as nonresident intermediaries who receive payments from Moldovan resident individuals for the services provided through electronic networks, for which the place of supply is considered Moldova. The respective mechanism applies to B2C supplies only. The nonresident should register in its own name with the local tax authority, under a simplified online procedure, within the first fiscal period (i.e., quarter) in which the obligation to calculate and pay the VAT arises, before the return filing. The VAT due for digital services should be declared and paid quarterly by the respective nonresidents.
Annual returns. Annual returns are not required in Moldova.
Supplementary filings. No supplementary filings are required in Moldova.
Correcting errors in previous returns. A voluntary disclosure is required to be submitted to the tax authority for the underpayment of VAT, and the taxable person should file an amended VAT return for the respective period. If the taxable person finds that the previously filed tax return contains an error or omission, it has the right to submit a corrected tax return, according to the form and completion method in force for the tax return to be corrected. The corrected tax returns are filed by using the same specific online electronic platform of the tax authorities that is used for filing the regular VAT returns.
Digital tax administration. Electronic invoicing. A taxable supply performed under the public procurements should be documented with an electronic invoice (e-invoice) by using a specific online platform provided by the tax authorities. Also, there is a list of taxable persons approved by the tax authorities for which the use of electronic invoice is mandatory. For further details, see the subsection Electronic invoicing above.
J. Penalties
Penalties for late registration. Failure to register or late registration for VAT is penalized with a fine from 7% to 10% of the amount of taxable supplies, excluding supplies exempted from VAT with the right to deduction.
Penalties for late payment and filings. Failure to comply with the tax reports preparation and filing rules (including non-filing, late filing or filing of untruthful information) will be penalized with a fine, from MDL500 to MDL1,000 for each tax report, but no more than MDL10,000 for all tax reports subject of tax infringement, applied to business entities.
Interest for delay in payment of the understated taxes is calculated for the period starting with the due date until the day (including) of effective transfer to the budget (the rate varies from year to year based on the refinancing basic rate, provided by the National Bank of Moldova plus five points). For example, the annual interest rate for 2024 year is equal to 10%. At the time of preparing this chapter, the interest rate for delayed payments is not known, as the refinancing basic rate has not been published by the National Bank of Moldova.
Penalties for errors. The understatement of VAT by submitting to the tax authorities a VAT return with invalid information or data is sanctioned with a fine from 20% to 30% of the understated VAT amount.
Failure to issue in time the tax invoice, as well as failure to register the tax invoice in the general electronic register of the fiscal invoices, will be penalized with a fine from MDL3,000 to MDL3,600 per each fiscal invoice but not more than MDL72,000.
There are no specific penalties associated with the late notification or failure to notify the tax authorities of changes to a taxable person’s VAT registration details. For further details, see the subsection Changes to VAT registration details above
Penalties for fraud. Evasion from calculation and payment of VAT will be penalized with a fine from 80% to 100% of the respective VAT amount.
If the infringement is qualified as a tax evasion and the income tax exceeds in total 50 average forecast salaries (approximately MDL685,000), criminal investigations could be initiated (both for the company and its responsible person), subject to a list of financial and other type of sanctions to be imposed based on the decision taken by the court. At the time of preparing this chapter, the average forecasted salary for 2025 has not been published.
Personal liability for company officers. Company officers can be held personally liable for errors and omissions in VAT declarations and reporting in Moldova. Filing of tax returns with untruthful and/or incomplete information will be penalized with a fine from MDL450 to MDL1,500