The east European state of Moldova has introduced Value Added Tax obligations on non-resident providers and payment intermediaries of digital services through electronic networks to its consumers from 1 April 2020. This requires a simplified electronic services VAT registration. The standard VAT rate in Moldova is currently 20%.
Check VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
What digital services are liable to Moldovan VAT?
Income from the following services is subject to VAT:
- Streaming films and music
- SaaS or cloud-based software
- Automated e-learning
- Membership to club, dating and similar sites
VAT registrations and compliance
There is no VAT registration threshold in Moldova for non-resident digital service providers. Electronic VAT returns should be filed on a quarterly basis by the 25th of the following month. This should include VAT due.
B2B digital services excluded
B2B supplies by non-residents are excluded from the above. Instead, the Moldovan business customer should make a VAT payment directly to the tax office, to be deducted in their own next VAT return. This is effectively a Withholding VAT regime.
Europe VAT on digital services
|Country (click for details)||Rate||Date||Threshold||Comments|
|EU 27 member states||17% to 27%||Jan 2015||€10k EU residents; Nil for non-EU|
|Bosnia Herzegovina||17%||Jan 2023||BAM 50.000|
|Iceland||24%||Nov 2011||ISK 2 million|
|Norway||25%||Jul 2011||NOK 50,000|
|Russia||16.67%||Jan 2017||Nil||B2C & B2B|
|Switzerland||7.7%||Jan 2010||CHF 100,000 on global income|
|Ukraine||20%||Jan 2022||UAH 1m|