3 February 2020
Moldova has postponed extending its Value-Added Tax (VAT) system to include digital services supplied by non-resident (foreign) companies to 1 April 2020.
At present, foreign businesses providing digital services in Moldova do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Moldovan resident providers, the Moldovan government has announced that VAT at 20% will be applied on these types of transactions from April 2020.
Moldova has also confirmed that there is no threshold to register for non-resident suppliers and that the new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.