The supply of services by a non-resident having a permanent establishment is subject to VAT in Moldova.

If non-resident companies supply taxable services (including electronic communication services, broadcasting and television services, and services provided by radio-electronic means) without a permanent establishment in Moldova, the place of supply of services is considered in Moldova if the recipient of the services is located in Moldova and the resident customer (B2B) becomes liable for payment of VAT by application of a reverse-charge mechanism.

Effective 1 January 2023, the import of service by a non-resident having a permanent establishment in Moldova but not registered for VAT is subject to VAT on a reverse charge basis, and the non-resident importing service is liable to pay VAT on such import. The VAT liability for imported services arises on the date of the import of the service or the date of payment for the service, including advance payment, whichever is earlier. The VAT due must be paid by the 25th of the month following the month in which the service was imported or payment for the service was made.

The VAT-registered non-resident with a permanent establishment in Moldova is not required to pay VAT on such imports. The VAT amount related to such import is reflected as output VAT, and input VAT is allowed for deduction.

Digital Supplies

Effective 1 April 2020, the supply of digital services including online advertising services through electronic networks by a non-resident without a permanent establishment to consumers in Moldova (B2C) is subject to VAT in Moldova at the standard rate, and such non-resident, including a non–resident acting as an intermediary for electronic payments, is required to register and pay VAT in Moldova using the online VAT service launched by the tax authorities. The taxable value of services provided through electronic networks by non-residents is the value paid by the buyers (excluding VAT), with the VAT included in the price at a rate of 16.67%. There is no threshold for registration and all non-resident suppliers of taxable digital services are required to register regardless of the turnover from supplies in Moldova. VAT returns in relation to digital services are required to be filed on a quarterly basis by the 25th day of the month following the end of the tax period.

Digital services include:

Granting the right to use computer programs (including computer games) and databases via the internet, including through the provision of remote access, as well as the right to update and expand their functionality;
Providing advertising services on the internet, including the use of computer programs and databases operating on the internet, as well as the provision of advertising spaces on the internet;
Providing services for the placement of offers for the purchase (sale) of goods (services), and property rights on the internet;
Providing services through the internet involving the provision of technical, organizational, informational, and other opportunities to establish contacts and conclude transactions between sellers and buyers (including the provision of online shopping areas where potential buyers offer their price using an automated procedure and the parties are notified of the sale by means of an automatically generated message);
Ensuring and/or maintaining commercial or personal existence on the internet, supporting information resources of users (sites and/or pages on the internet), providing access to such sites/pages for other network users, and providing users with the ability to change such sites/pages;
Storage and processing of information, provided that the person providing this information has access to it via the internet;
Providing online computing power for posting information to information systems;
Providing domain names and hosting services;
Providing services for the administration of information systems and sites on the internet;
Providing automatic data search, selection, and sorting services upon request when data is entered by users of services and the provision of such data to users through information and telecommunication networks (in particular, provision of stock exchange reports in real-time, and automatic translation in real-time);
Granting through the internet the rights to use electronic books and other electronic publications, information, educational materials, graphic images, musical works with or without text, and audio-visual works, including by providing remote access to them for viewing or listening;
Providing recipients with search services and/or providing recipients with information about potential buyers;
Providing access to internet search engines;
Keeping statistics on internet sites;
Providing digital transmission of radio or television programs; and
Providing access to audio-visual content.

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