Information on the Value Added Taxation for provision of electronic services by non-residents in the customs territory of Republic of Moldova

Subject of the Value Added Taxation

– a person who, respectively

to the law, is obliged to calculate and / or pay VAT to the budget 

1) Non-resident economic agents who, having no organizational and legal form in the territory of Republic of Moldova, provide services to citizens of Republic through electronic networks.

2) Non-resident economic agents who do not have official legal form in Republic of Moldova through which payment is made, individuals-residents of Republic of Moldova who do not carry out business activities for provision of services via electronic networks by other non-residents, if provision place of such services is considered to be Republic of Moldova.

Note: 1) Entities must register on the electronic platform “VAT e-commerce” on the official website of the State Tax Service www.sfs.md

2) Provision place of services provided by non-residents without organizational and legal form in Republic of Moldova in the B2C format is considered to be Republic of Moldova, if at least one of the following conditions is met:

а) residence place of individual is in Republic of Moldova;

b) headquarters of financial institution with which account used for payment of services is opened or the headquarters of operator of electronic financial means through which payment is made is located in Republic of Moldova;

c) E-mail address (IP) of device used by the buyer to purchase services is located in Republic of Moldova;

d) telephone prefix of a country used to purchase or pay for services is assigned to Republic of Moldova

Types of electronic services classified as taxable – electronic services provision of which entails  obligation to calculate and / or pay VAT to the budget (if the recipient’s status is legal entity or individual) 

Services provided via the telecommunications information networks, including automated global Internet, using information technology, namely: 

a) granting the right to use computer programs (including computer games), databases via the Internet, including by providing remote access to them, as well as right to update and expand their functionality; 

b) provision of advertising services on the Internet, including the use of computer programs and databases that operate on the Internet, as well as provision of advertising space on the Internet; 

c) provision of services for the placement of suggestions for the purchase (marketing) of products (services), property rights on the Internet; 

d) provision of services via the Internet, namely provision of technical, organizational, informational and other opportunities realized through the use of information technology and systems, including provision of online retail space, where potential buyers offer their price through the automated procedure and parties receive automatic messages); 

e) provision / support of commercial and personal pages on the Internet space, support of information resources of users (sites / pages in Internet networks), providing access to them to other users of networks, offering users opportunity to change them; 

f) storage and processing of information, provided that the person providing information has access to it via the Internet; 

g) provision of computing power for placing information in information systems online; 

h) providing domain names by providing host services;

i) provision of services for administration of information systems, sites on the Internet;

j) provision of automated services via the Internet when entering information by the buyer of services, provision of services for searching, selecting and sorting data on demand, providing this data to the user through information and telecommunications networks (especially real-time stock market reports, real-time translation);

k) granting rights to use electronic books (publications) and other electronic publications via the Internet, as well as educational information materials, graphic presentations, musical works with or without lyrics, audiovisual works, including providing remote access to them for viewing or listening;

l) provision of search services to beneficiaries and / or providing beneficiaries with information regarding potential buyers;

m) provision of access to search systems on the Internet;

n) maintaining statistics of Internet of the network sites;

o) digital transmission of radio and television programs;

p) provision of access to audiovisual content.

Tax base – cost of services provision of which is charged with VAT

Tax base of services provided via the Internet by non-resident taxpayers represents the cost paid by buyers (excluding VAT)

VAT rate –  amount of tax is set as a percentage

VAT rate is 16.67%

Taxation period­ is a period of time for which the tax base is determined and tax is calculated

VAT tax period for non-resident taxpayers is a calendar quarter

How to submit the VAT declaration – procedure and deadlines for submitting the VAT reporting (VAT declarations)

Taxpayer is obliged to submit the VAT declaration for each tax period when the operation is subject to taxation.

VAT declaration is formed according to the form approved by the State Tax Service and is submitted automatically in electronic form through the taxpayer’s E-cabinet by the 25th day of a month following the reporting period

VAT payment – procedure and terms of VAT payment to the budget

Within a deadline set for submitting the declaration is by the 25th day of a month following the reporting period

Currency in declaration and the VAT payment –  currency in which, according to national legislation, it is necessary to declare and pay the VAT amount to the budget

For each tax period, the taxable individual must pay amount of the VAT to the budget in one of the currencies MDL / USD / EUR for the period.

All value indicators of services and taxes defined in declaration are reflected in one of the three currencies MDL / USD / EUR.

VAT taxable turnover is also declared in one of these currencies.

If a foreign organization receives payment from customers, including partial payment in several currencies, in this case, drawing up the VAT declaration, the cost of services and taxes are reflected in currency chosen for declaring and making payments to the budget

Is there a procedure for registering a supplier as the VAT subject?

Yes

VAT registration procedure (remote / non-remote)

Remote

Web site

www.sfs.md