The new Law No. 318 in the Republic of Moldova introduces several significant changes related to Value Added Tax (VAT). Here’s a summary of the key VAT-related points:
Clarification on Taxable Value for Discounts (Article 97(1) of the Fiscal Code):
- Change: The taxable value of a supply will now explicitly be reduced by the amount of any price reduction granted to customers at the time of delivery. This includes discounts, rebates, bonuses, loyalty points, or other forms of price reductions.
- Impact: This provides legal clarity that such upfront price reductions should decrease the VAT base, ensuring VAT is calculated on the net amount actually paid by the customer after the discount.
Adjustment of Taxable Value for Natural Gas Distribution Services (Article 98(3) of the Fiscal Code):
- Change: The taxable value for natural gas distribution services provided by system operators to natural gas suppliers will be adjusted by the amount of compensatory equalization payments, as determined by Law no. 108/2016 on natural gas. This adjustment is to be made based on an accounting note.
- Impact: This ensures that the VAT base for these specific services accurately reflects the economic reality after compensatory mechanisms are applied.
Potential Increase in VAT Thresholds (Article 112(1) and (4) of the Fiscal Code):
- Change: The monetary threshold in Article 112(1) and (4) is increased from “1.2 million” to “1.5 million” lei.
- Impact: While the specific context of Article 112 is not fully detailed, such thresholds in fiscal codes commonly refer to the VAT registration threshold. An increase would mean that businesses with annual taxable turnover below 1.5 million lei might not be required to register for VAT, potentially reducing the administrative burden for smaller enterprises.
Extension of VAT Refund Program for Agricultural Producers (Law No. 337/2022):
- Change: The VAT refund program for agricultural producers, previously covering 2022-2024, is now extended to include 2025.
- Change: The methodology for calculating the refund amount is clarified. It now includes “the total of the amount of VAT intended for deduction for the subsequent tax period reflected in the VAT return for the tax period December 2024 and the amount of VAT accepted for refund for the tax periods forming part of the refund period set out in Article 6(b).”
- Impact: Agricultural producers will benefit from VAT refunds for an additional year, and the rules for calculating these refunds are made more precise.
Vehicle Amnesty with Implications for Customs Duties (and potential import VAT) (Article XIII(3)):
- Change: A temporary amnesty period (January 1, 2026 – December 31, 2027) is introduced for vehicles (tariff heading 8703) that were temporarily admitted to Moldova’s customs territory before July 1, 2025, and whose 180-day admission term has expired and are now destroyed or sold for parts.
- Impact: Instead of previous customs debts and/or late payment penalties (which often include or are levied alongside import VAT), a single payment of 40,000 lei per vehicle can be made to close the temporary admission regime. This effectively cancels any unpaid import duties and related charges (including potential import VAT) but explicitly states that already paid import duties/penalties will not be refunded. This aims to regularize the status of a specific category of vehicles without full customs and VAT payments typically associated with permanent import.
Source legis.md
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