The payment of VAT by international companies that provide electronic services for private individuals, such as Facebook, Google and other nonresidents that use different applications on Moldova’s territory, was postponed until next April. Initially, the 2020 draft budgetary-fiscal policy provided that this VAT will be applied as of January 1 next year, IPN reports.
It was also envisioned that these companies will be obliged to register with the State Tax Service. In a program on Radio Sputnik Moldova, Dorel Noroc, secretary of state at the Ministry of Finance, said the decision to put off the application of VAT was taken by the Government at the Parliament’s suggestion.
“In fact, Parliament suggested that the implementation of the measure should be put off for a year. We considered it is enough to postpone it until April 1 next year. From technical viewpoint, we are prepared. The E-commerce-VAT platform for companies to register is already available on the website of the State Tax Service. To manage to inform all the companies that provide electronic services on the territory of the Republic of Moldova, we provided a period of three months and this time is also enough for them to register. Starting with April 1, these companies will pay value added tax on electronic services,” explained Dorel Noroc.
The obligation to register and pay VAT on electronic services imposed on nonresident companies is expected to generate additional budget revenues of about 75 million lei.
