Moldova VAT on digital services

The east European state of Moldova has introduced Value Added Tax obligations on non-resident providers and payment intermediaries of digital services through electronic networks to its consumers from 1 April 2020. This requires a simplified electronic services VAT registration. The standard VAT rate in Moldova is currently 20%.

Check VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

What digital services are liable to Moldovan VAT?

Income from the following services is subject to VAT:

• Streaming films and music
• E-books
• SaaS or cloud-based software
• Automated e-learning
• Gaming
• Membership to club, dating and similar sites
• Apps

VAT registrations and compliance

There is no VAT registration threshold in Moldova for non-resident digital service providers. Electronic VAT returns should be filed on a quarterly basis by the 25^th of the following month. This should include VAT due.

B2B digital services excluded

B2B supplies by non-residents are excluded from the above. Instead, the Moldovan business customer should make a VAT payment directly to the tax office, to be deducted in their own next VAT return. This is effectively a Withholding VAT regime.

Europe VAT on digital services