MOLDOVA: COVID-19 VAT IMPLICATIONS

MOLDOVA – Update 6th May

COVID-19: VAT Refund Programme

A VAT refund programme to combat the COVID-19 pandemic was introduced. The beneficiaries of the programme are business entities registered as VAT payers entitled to carry forward the input VAT in the next tax period.
An application for the VAT refund will be submitted to the State Tax Service after the VAT return is filled in together with the tax return for the corporate income tax and also payment of corporate income tax, social security and medical assistance contributions for the current tax period. 
The amount of VAT to be refunded will be the minimum amount from the following amounts:

• the amount of input VAT carried forward in the next tax period;
• the amount of corporate income tax, social security and medical assistance contributions for the current tax period,
• and the amount of corporate income tax, social security and medical assistance contributions calculated for February 2020.

 Nevertheless, the total amount of VAT to be refunded may not exceed the input VAT to be carried forward to the next tax period as declared in the VAT return for December 2019. The VAT will be refunded within 25 business days from the application date.
 The amendments are applicable as of 1 May 2020 until 31 December 2020. The VAT refund programme was introduced by Law No. 60 of 23 April 2020, which was published in Official Gazette No. 108-109 on 25 April 2020.
 
Source Credit – Vasile Foltea

MOLDOVA – Update 24th April

Moldova Cuts VAT Rate for Hospitality Sector Due to COVID-19

Moldova’s government has reportedly approved a reduction in the VAT rate for the hospitality sector due to COVID-19. The rate is reduced from 20% to 15% for food/services provided by hotel, restaurant, and catering service providers with effect from 1 May 2020.

Source Credit – Orbitax

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