Tax rate by region Moldova

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

SaaS Sales Tax in Moldova: A Comprehensive Guide for Businesses

Moldova, a country in Eastern Europe, adopted a Value Added Tax (VAT) system in 1998 to ensure consistent tax compliance and bolster public revenue. Understanding the ins and outs of VAT and its application to Software as a Service (SaaS) is crucial for businesses operating in Moldova. This guide explores the nuances of SaaS sales tax in Moldova, offering practical insights to aid businesses in navigating these regulations effectively.

The standard VAT rate in Moldova is 20%, applicable to both tangible goods and digital services like SaaS. Subsequent VAT returns and payments must be submitted quarterly, with payments due by the 25th of the month following the end of the quarter.

Maintaining accurate record-keeping is vital for VAT compliance in Moldova. Businesses must retain essential documentation like accounting records, sales and purchase invoices, receipts, bank statements, and payroll records (if applicable) for a minimum of five years. Additionally, Moldova mandates e-invoicing for VAT purposes, ensuring the authenticity and integrity of invoices issued to customers.

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Moldova

Moldova adopted a VAT system in 1998 to improve tax compliance and enhance public revenue.

Official government link: Serviciul Fiscal de Stat

20.00%

E-products and services VAT/Sales tax rate

8.00%

Reduced tax rate

Reduced tax rate product categories

No specific reduced tax rate for digital goods and services

Exempted product categories

No specific digital goods or services are exempt

Reverse charge mechanism for B2B sales

Yes, but not for all B2B sales

Tax ID validation required

Yes

When do you have to register

Non-resident companies must register for VAT in Moldova if they supply digital services to individuals residing in Moldova through electronic networks.

Online registration possible

No

Local representative needed

Yes

Registration procedure

Non-resident businesses must register for VAT with the State Tax Service before filing their first VAT return. This registration is done electronically.

Additionally, within three working days of starting business activities in Moldova, non-residents must apply for a tax code. The application requires identification documents (for individuals) or certified company documents (with a Moldovan translation) and proof of business operations.

List of digital and electronic services liable for tax

Streaming films and music
E-books

Penalties

Failure to provide VAT invoice: A fine ranging from MDL 3,000 to MDL 3,600 for each VAT invoice, with a maximum of MDL 72,000.
Failure to comply with tax return filing rules: A fine between MDL 500 to MDL 1,000 for each tax return, with a maximum of MDL 10,000.
Late payment of VAT: Interest charges and potential penalties.
VAT evasion: Significant penalties, including potential criminal charges.

Registration threshold

No specific threshold

Filing interval

Quarterly

Filing deadline

Up to the 25th day of the month following the end of the quarter

E-invoicing requirements

Yes

Record keeping

Accounting records: These should accurately reflect your financial position and enable the preparation of financial statements.
Invoices: Both sales and purchase invoices should be retained.
Receipts: All receipts for expenses should be kept.
Bank statements: These should be retained to reconcile with your accounting records.
Payroll records: If applicable, these should be maintained.

Records must be kept for at least 6 years

How-To Guides: Moldova SaaS VAT

Step: 1 Threshold

Effective April 1, 2020, Moldova requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Moldova to register for and collect VAT, regardless of the sales amount.

 

Non-resident digital service providers have no registration threshold for B2C sales; registration is mandatory upon the first sale. For B2B, if you have a local permanent establishment, the threshold is MDL 1.2 million.

Step: 2 Business Registration

Managed by the State Tax Service (STS). Non-residents providing digital services (SaaS) use the “e-Commerce-VAT” simplified registration portal.

Step: 3 TIN/VAT Number

Non-residents are assigned a Fiscal Code (Tax ID) by the STS upon successful electronic registration.

Step: 1 Standard VAT Rate

The standard VAT rate in Moldova is 20%.

Step: 2 VAT Formula

To calculate your tax amount, use the following formula: 

 

Tax Amount = Net Price x 20%

Step: 3 Reverse Charge (B2B)

It applies. For B2B sales to Moldovan VAT-registered entities, the Reverse Charge Mechanism shifts the liability to the buyer. The non-resident seller does not charge VAT.

Step: 1 Selling B2C

Non-resident SaaS providers must charge 20% VAT to private individuals and remit it to the STS.

Step: 2 Selling B2B

VAT is not charged by the seller if the buyer provides a valid Moldovan VAT ID. Use the reverse charge note on the invoice.

Step: 3 Invoice Requirements

Invoices must include:

  • Supplier name/address
  • Supplier Fiscal Code
  • Buyer details
  • Date of issue
  • Sequential number
  • Description of services
  • Net price
  • VAT rate (20% or “Reverse Charge”),
  • Total amount.

Step: 1 Filing Interval

Taxes should be filed: 

  • Quarterly for non-resident e-service providers
  • Monthly for residents/PE.

Step: 2 Filing Deadline

Taxes should be filed on the 25th day of the month following the reporting quarter.

Step: 3 Submission

Taxes should be filed via the STS Electronic Services Portal. Payment can be made in MDL, USD, or EUR.

Step: 4 Record Keeping

Documents must be retained for at least 6 years (per general accounting laws).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Moldova’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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