VAT reforms continue as EU accession talks progress
Moldova’s Ministry of Finance has opened a consultation on significant VAT reforms aimed at simplifying the VAT regime and broadening the tax base.
The reforms are part of the country’s EU VAT alignment programme, a condition of joining the union.
Key proposals include:
- Standard VAT rate extended: The 20% standard VAT rate would replace the reduced 8% rate for hospitality services and food, certain pharmaceutical products, agricultural produce and livestock, and natural gas (from 1 April 2027).
- New taxable supplies: The standard rate would also apply to several currently VAT-exempt supplies, including residential property, most vehicle sales and low-value imported online purchases.
- VAT registration changes: The MDL 1.7 million registration threshold would be based on turnover, with businesses able to register voluntarily if they expect to exceed the threshold.
- VAT deregistration: Businesses could request cancellation of their VAT registration where turnover falls below the MDL 1.7 million threshold over a 12-month period.
- Broader VAT refunds: Taxpayers would gain a general right to reclaim excess input VAT over output VAT for transactions from 1 January 2027.
The consultation opened on 11 June 2026. If adopted, most of the reforms would apply from 1 January 2027, with selected VAT rate changes beginning on 1 October 2026 and 1 April 2027.
