Moldova has enacted changes to its reduced VAT rates from 1 January 2027
Increases tax on hospitality and agricultural while preserving relief for essential goods and household energy
Law No. 247, published in the Official Gazette on 31 October 2026, introduces a revised reduced VAT rate structure. The standard VAT rate remains unchanged at 20%. The standard VAT rate remains at 20%.
Moldova’s new 2027 VAT rates
12% reduced VAT rate – increased from 8%
- Hotels, restaurants, catering and other hospitality services (HoReCa).
- Selected livestock, agricultural and horticultural products.
- Certain fresh fruits and dairy products, according to their tariff classification.
8% reduced VAT rate – retained or extended
- Essential foods, including bread, milk, selected dairy products, vegetables and fruit.
- Eggs and poultry.
- Medicines, medical devices and specified healthcare products.
- Household natural gas consumption up to 150 cubic metres per month from 1 April 2027.
Agricultural cereals and oilseeds will retain their 8% VAT rate during 2027, with the increase to 12% deferred until January 2028.
New VAT relief for household energy
From 1 April 2027, Moldova will introduce consumption-based VAT relief for residential energy supplies.
The first 150 cubic metres of natural gas consumed monthly will qualify for 8% VAT, with consumption above this threshold subject to the standard 20% rate.
Household electricity will benefit from zero-rating for the first 150 kWh per month. Consumption above this limit will attract 20% VAT.
Zero VAT on books and publications
Moldova is also introducing VAT exemption with the right to deduct input VAT, equivalent to zero-rating, for:
- Printed books and periodicals.
- Electronic books and audiobooks.
- Related publishing and copyright services.
Certain publications, including advertising and erotic materials, are excluded.
Implications for businesses
The changes will require businesses to update VAT determination, product classifications, invoicing and accounting systems ahead of January 2027.
Hospitality operators face a four-percentage-point VAT increase, while agricultural suppliers must distinguish products subject to 8% and 12% rates.
The introduction of consumption-based energy thresholds also creates additional calculation requirements for utility providers.
