1 April 2020 – starting day for the new Moldovan VAT regime on cross-border supplies of digital services
At the end of 2019, Moldova introduced a full liability VAT regime on non-resident online marketplaces participating in B2C cross-border supplies of digital services. The key drivers of this reform, according to the Government, are the transformation of VAT regime over the digital services at the EU level, and the need to protect domestic suppliers.
The new regime is addressed to online marketplaces with no fixed business establishment in Moldova that:
- directly sell digital services to resident consumers; or
- intermediate the sales of digital services between non-resident suppliers and resident consumers.
The new regime is effective on 1 April 2020 and involves the following obligations for non-resident online marketplaces:
- Register as VAT payer with no fixed business establishment in Moldova, according to a simplified procedure. No registration thresholds are applicable.
- Declare and pay VAT to Moldovan budget on quarterly basis. A standard 20% VAT rate is applied calculated from the value paid by Moldovan non-business consumers.