Moldova Tax Agency Announces Approval of VAT Reverse Charge Mechanism

The Moldovan State Tax Service May 5 announced parliament approval of the reverse charge mechanism for VAT. The proposal includes measures to: 1) introduce a new VAT reverse charge mechanism for the procurement and delivery of electricity and natural gas; 2) clarify the conditions for applying the VAT reverse charge mechanism, which requires both buyers and sellers to be registered VAT payers; 3) explain that VAT would be calculated and recorded by the buyer as collected and deductible VAT, but wouldn’t be included on the seller’s VAT invoice; 4) introduce a provision that regulates the reverse charge mechanism for transactions ...