Question of the day

The State Tax Service announced certain changes in the method of declaring value added tax, as a result of the changes made in Article 102 (12) of the Tax Code in the part relating to the tax period during which taxable persons may exercise their right to deduct VAT relating to certain categories of purchases, as well as following requests received from the business community.

In accordance with Article 102 (12) of the Fiscal Code, the taxable purchaser (recipient) of services, electricity, heat, natural gas, fixed and mobile public telephone services, municipal services and petroleum products is entitled to deduct the amount of VAT paid or to be paid for the purchases in question in the month in which the supply took place, if the invoice is issued by the supplier up to and including the 10th day of the month following the month in which the supply documented by the respective tax invoice took place.

Thus, in the Module for completing the VAT return, amendments have been made allowing economic operators to declare in Annex 1 ‘Tax invoices received’ to the VAT return tax invoices issued by suppliers of goods/services, specified in Article 102 (12) of the Fiscal Code, through two options:

✔ in the tax period in which they were received;

✔ during the tax period in which the supplier supplied the goods/services, for which, in accordance with Article 102 (12) of the Fiscal Code, purchasers may exercise their right to deduct VAT during that tax period.

In addition, the amendments to the VAT return give concrete expression to the list of persons required to submit the VAT return, which, in the context of contractual relations, are listed as purchasers of the goods of businesses registered for VAT purposes, in the process of insolvency, with the exception of those under the procedure for restructuring and implementing the plan, and of goods with the status of pledged, mortgaged or seized.

For details, see: SFS Order No 428 of 3.8.2021which can be accessed here.

Source: bizlaw.md