Moldova Develops VAT Registration Procedure for Intermediaries Handling Low-Value Distance Sales

Summary

Moldova has developed draft registration rules for local intermediaries representing non-resident sellers and electronic marketplaces under a proposed special VAT regime for distance sales of imported goods. The regime would cover non-excise goods sold to Moldovan consumers in consignments with an intrinsic value not exceeding EUR 150. [kpmg.com], [vatupdate.com]
Under the proposal, a non-resident seller or marketplace could not register directly and would need to appoint an intermediary established in Moldova. The intermediary would calculate and remit VAT, act as customs declarant and obtain a separate VAT identification number for each non-resident relationship. [kpmg.com], [logos-pres.md]
The legislation and registration order had not yet been definitively finalised in the sources reviewed. Platforms, sellers, couriers and potential intermediaries should therefore prepare transaction mapping and data requirements but base system activation, registrations and customer communications on the enacted legislation and final implementation date. [kpmg.com]

Extended article

Moldova is developing a special VAT regime for low-value goods sold remotely to consumers and imported into the country.

The proposed regime would apply to non-excise goods with an intrinsic value not exceeding EUR 150 per parcel. It would replace the existing VAT exemption for qualifying low-value imported parcels and apply Moldova’s standard 20% VAT rate. [kpmg.com], [logos-pres.md]

Contrary to the earlier headline, the available sources indicate that the intermediary registration procedure was still part of a draft package and should not yet be described as definitively approved.

Transactions within the proposed regime

The special regime would cover distance sales where:

the customer is an individual in Moldova;
the customer is not carrying on a business activity for the transaction;
the goods are imported;
the intrinsic value does not exceed EUR 150;
the goods are not subject to excise duty; and
a non-resident seller or electronic interface is involved.

The proposed regime resembles the VAT-at-checkout approach used for low-value e-commerce imports in other jurisdictions, but Moldova’s use of a compulsory locally established intermediary is a significant operational feature.

Role of the intermediary

A non-resident seller or platform would reportedly be unable to register directly. It would need to appoint an intermediary established in Moldova.

The intermediary would:

register the represented non-resident;
calculate and remit VAT;
act as customs declarant;
submit the required information;
maintain separate identification data; and
act on behalf of and at the expense of the non-resident taxpayer.

Where an intermediary represents several non-residents, a separate VAT identification number would be required for each relationship. The intermediary’s obligations for the special regime would remain separate from its own ordinary Moldovan VAT obligations. [kpmg.com], [logos-pres.md]

Platform and seller characterisation

Businesses should determine whether they act as:

the underlying seller;
a marketplace facilitating the sale;
a platform treated as responsible for VAT;
a payment-service provider;
the Moldovan intermediary;
a postal operator or courier; or
the customs declarant.

Contracts should reflect the role assigned under the legislation. A platform’s commercial description as an “agent” does not necessarily determine its VAT responsibility.

Transaction data

Correct VAT accounting will depend on complete transaction-level data, including:

seller identity;
intermediary identification number;
customer location;
parcel value;
currency conversion;
product description;
confirmation that the goods are non-excisable;
payment date;
VAT collected;
customs declaration reference; and
shipment and delivery status.

The same identification and value information should be used in checkout, payment, VAT reporting and customs clearance. Differences may cause delayed clearance or duplicate VAT collection.

Alternative collection mechanism

Where the special regime is not applied, the person presenting the goods to customs on behalf of the recipient, such as a postal operator or courier, could use an alternative mechanism.

According to the proposal, this would involve a guarantee, electronic customs declaration and payment of VAT within 30 days after release for free circulation. [kpmg.com]

Recommended actions

Affected businesses should: