The 2020 - 2022 customs fiscal policy document provides for the introduction of the reverse taxation principle for insolvent companies. According to the Minister of Finance, Natalia Gavrilița, by introducing the principle of reverse taxation, harm to the state budget will be avoided. The topic was discussed during a meeting organized by the Ministry of Finance, attended by representatives of the State Tax Service, the National Bank of Moldova, the business environment, banking institutions and employers' associations.
In a Ministry of Finance press release, it is mentioned that the amount of Value Added Tax (VAT) paid for the pledged, mortgaged, sequestered property or for the assets of the companies declared insolvent will be transferred to the budget as a priority.
"This is an international practice. We want to introduce the principle of reverse taxation for companies that are insolvent or are engaged in collateral trading. Given the inability of the seller to pay, often the amount of VAT related to the sold good is not paid to the budget and the deduction of the VAT amount takes place, which actually does not reach the budget", the minister said.
In accordance with the principle of reverse taxation, in case of sale of the good by the insolvent economic agent (seller) to another economic agent (buyer), the latter calculates and pays the VAT amount to the budget, subsequently having the right to deduction.
The Ministry of Finance has launched a series of consultations on the customs fiscal policy document for the 2020 - 2022. So far, the Ministry's management has discussed this topic with business associations, representatives of local and central public authorities, employers and unions.
