Question of the day

Under Article 104 of the Fiscal code of the Republic of Moldovaexempt from T.V.A. with the right to deduct:

a) goods, export services and all types of international freight transport (including dispatch) and passengers, international natural gas transport services, as well as services of the aerodrome operator (airport), trade in international traffic tickets, land transport of aircraft, including delivery of fuel and on-board cargo on aircraft, aviation security, air-search and navigation services, relating to international traffic aircraft, fuel intended for supply in the International Free Giurgiular Port of seagoing vessels involved in international transport of goods and passengers, irrespective of the nationality of the vessel or its flag;

b) electricity, heat and heat for residential real estate, regardless of the subject in whose management these goods are managed;

C) import and/or supply in the territory of the country of goods, services intended for:

— technical assistance projects carried out in the territory of the Republic of Moldova by international organisations and donor countries within the limits of the Treaties to which it is a party;

— investment assistance projects, financed from the grant accounts to the Government, as well as grants to institutions financed from the budget.

The list of international treaties to which the Republic of Moldova is a party, the list of technical assistance projects, the list of grants to the Government and institutions financed by the budget, and the application of the exemption from T.V.A. with the right to deduct the supply of goods on the territory of the country, the services for those projects shall be determined by the Government;

d) goods, services delivered to the free economic zone outside the customs territory of the Republic of Moldova delivered from the free economic zone outside the customs territory of the Republic of Moldova delivered to the free economic zone of the rest of the customs territory of the Republic of Moldova, as well as those supplied by residents of the various free economic areas of the Republic of Moldova, with the exception of transport services supplied in the free economic zone of the rest of the customs territory of the Republic of Moldova, as well as those supplied by residents of the various free economic areas of the Republic of Moldova one another;

e) goods delivered by the resident of a free economic zone of the Republic of Moldova to a non-resident of the Republic of Moldova if the good is handed over for the purpose of processing a resident of another free economic area of the Republic of Moldova as indicated by the non-resident buyer/beneficiary;

f) services provided by light industry enterprises in the territory of the Republic of Moldova to economic operators placing goods under the customs procedure for inward processing under processing contracts under the inward processing customs procedure. The type of services falling within the scope of this point and the management of such services shall be determined by the Government and the list of economic operators shall be approved by the Ministry of Economy and Infrastructure;

g) goods delivered in duty-free shops;

h) goods and services delivered to the International Port of Liber Giurgiulești and Liber Mărculești International Airport outside the customs territory of the Republic of Moldova, those supplied from the International Free Giurgiulești International Port and Free Trade Airports outside the customs territory of the Republic of Moldova, those delivered to the International Free Trade Union Porter and the Free International Airports of the Free Trade Union of the Republic of Moldova, as well as those supplied by residents of the various free economic areas of the Republic of Moldova, the Free Trade Ports of the Republic of Moldova, the Free Trade Union Aeroporte of the International Free Trade Republic of the Republic of Moldova, as well as those supplied by residents of the different free economic areas of the Republic of Moldova, the Liberian International Porteal of the Republic of Moldova, the Free Trade Areas of the European Union of the Republic of Moldova, the Free Trade Areas of the Republic of Moldova, and those supplied by residents of the other free economic areas of the Republic of Moldova, the Liberian Free Trade Areas of the Republic of Moldova, the Extanguler International Free Trade Areas of the Republic of Moldova, as well as those supplied by residents of the various free economic areas of the Republic of Moldova, the Liberian Liberian Search of the European Union, the Free Trade Union airport of the Republic of Moldova, and the Free Trade Union Marketerland of the Republic of Moldova, as well as those supplied by residents of the various free economic areas of the Republic of Moldova, the Liber Giurgiulești International Porteer of the Free Trade Republic of the Republic of Moldova.

Q & A from Generalised basis of tax practice

28.18.9 What VAT tax regime is to be applied to supplies of goods and services exempt from VAT without the right to deduct in accordance with Article 10(3) of the Fiscal Code, effected in the circumstances set out in Article 104 of the Fiscal Code?

Article 103 of the Tax Code contains provisions on the categories of supplies of goods and services to which the VAT exemption without the right to deduct applies.

At the same time, the VAT tax regime relating to supplies of goods and services exempt from VAT without a right of deduction under that article is to be examined and established in the light of all the specific circumstances in which they are carried out.

Thus, if the supplies of goods and services referred to in Article 10.13 of the Fiscal Code, (e.g.: the production of books and periodicals, the construction and fitting-out of wind farms, etc.) is carried out in the circumstances set out in Article 104 of the Fiscal Code (e.g.: supplies intended for technical assistance or investment projects, supplies in the free economic area, etc.), the VAT tax regime applied to the supplies in question is to be exempt from VAT with a right of deduction.

Basis:(Explanations provided by the Ministry of Finance by letter No.09/3-13/14 of 20.1.2020)

Source: sef.md Accounting Officers