Moldova introduces VAT on Digital Services 1 April 2020

The government of Moldova will extend its VAT system to include digital services supplied by non-resident (foreign) companies from 1 April 2020.

Until the above-mentioned date, foreign businesses providing digital services in Moldova were not obliged to charge the standard 20% VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Moldovan resident providers, the government has announced that these types of transactions will be charged at VAT at 20%.

Moldova confirmed that there is no threshold to register for non-resident suppliers and that the new tax will apply to the following services: online streaming, online gaming, e-publishing and software. All cross borders companies will have to register to the Moldovan Tax authorities through a simplified system. The returns will need to be submitted on a quarterly basis.

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