INSTRUCTION OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

of March 10, 1995 No. 10

About procedure for calculation and tax discharge on value added
(it is published based on the law of the Republic of Moldova "About the value added tax")

I. General provisions

1. The value added tax is republican (nation-wide) tax and represents the indirect tax levied on each production stage and sales of goods of the performed works and the rendered services from increase in value, and also in case of commodity import.

According to the operating classification the value added tax is included into the category of the general consumption taxes and belongs to the multistage taxes.

The value added tax covers all industries of managing in which products are made and sold, works are performed and paid services, and also import are rendered.

2. According to the Law "About Bases of the Taxation System" the value added tax is enlisted in the national public budget and distributed in budgets of different levels according to the procedure and on the conditions determined by Parliament in case of approval of the budget for the forthcoming year.

3. Disputes over the value added tax between taxpayers and monitoring bodies are subject to consideration according to the current legislation.

II. Taxpayers

1. Taxpayers on value added are performing taxable business activity:

a) the companies having according to the legislation of the Republic of Moldova the status of legal entities, including peasant farms, and also the companies with foreign investments;

b) complete and the partnerships in commendam realizing goods (works, services) on its own behalf, and also sole proprietor companies;

c) other separate divisions of the companies which are in the territory of the Republic of Moldova, having settlement accounts in organizations of banks, except for independent divisions of the companies for which the legislation of the Republic of Moldova in addition determines procedure for centralized introduction of payments;

d) international associations and the organizations and foreign legal entities, except for representative offices of the foreign firms which are not investing the capital and whose activities in the territory of the country have no character of entrepreneurship;

e) organizations and the organizations - for the business activity performed by them, financed from the budget;

f) persons, including foreign, except for persons whose revenue from sales of goods (works, services) per year constitutes less than 400 minimum wages;

g) business entities are importers, and also persons who import goods worth over 1000 US dollars.

2. Taxpayers on value added, irrespective of form of business of managing, are the companies as constantly making taxable transactions, and for what these transactions have accidental character.

3. The legal entities and physical persons specified in subitems "a" - "е" Item I, are referred to as "companies".

III. Taxation object

1. The taxation object is any cession of property material (movable and immovable) and non-material in the territory of the Republic of Moldova, including its import through customs borders of the Republic of Moldova.

The cession of property material (movable, immovable) and non-material is understood as sales of goods *, performance of works * and rendering services * one economic agent to another, and also the population.

_____________________________
* Further goods (works, services)" hereinafter are referred to as"

The taxation object in case of sales of goods concerning which the taxation is established is realization of all goods as self-produced, and acquired.

For the purposes of the taxation the subject, product, products, including technological appointment, warmly energy and gas, real estate, including buildings and constructions, intangible assets are considered as goods.

3. In case of implementation of works the taxation object are amounts of the executed construction, repair, research, developmental, technological, design and survey and other work, not tax-exempt on value added.

4. When rendering services the taxation object is realization:

a) services of load carrying transport, including transportation of electrical and heat energy, services in loading, unloading, reloading of goods, storage;

b) services in leasing of property, including in leasing;

c) the intermediary services connected with delivery of goods;

d) communication services, household and utilities;

e) tourist and excursion services;

f) services in sales of goods;

g) services of private security;

h) promotion services;

i) innovative services, services in data processing and information support;

j) all other paid services, except granted tax allowance.

5. Realization (transfer) of goods (works, services) in the company on which costs do not belong on costs of production (addresses), and also to the workers also belongs to the taxation object. It is accepted to refer realization (transfer) of goods (works, services) made at the expense of own sources of financing to similar realization. For example, the cost of the installation of the new equipment, construction of buildings and constructions, etc. made by economic method.

6. The taxation object also joins the money received by the companies in the form of financial aid, replenishment of Special Purpose Funds or sent to the account of increase arrived, being at the command the companies, the amounts received according to the procedure of partial payment according to settlement documents - for the realized goods (works, services).

7. The taxation object on the inventory items imported on the republic territory are amounts of the goods imported to the Republic of Moldova through its customs borders.

IV. Determination of leviable turnover

1. For determination of leviable turnover is accepted:

a) for the manufacturing companies the cost of implementable goods (works, services):

- proceeding from the free (market) prices and rates (without inclusion in them of the value added tax and the amount of excise);

- proceeding from the state regulated prices and rates (without inclusion of the value added tax in them) applied on services of technological appointment between the companies (communication services, electro-both the heat power and others established according to regulations);

- proceeding from the state regulated prices and rates including the value added tax, applied on goods the services rendered to the population (communication services, electro-both the heat power and others established according to regulations).

b) for retailers, supplying and sales, wholesale, procurement and others, rendering services in sales of goods:

- the income from sales of goods, including import, implemented at free prices, determined as difference amount between sales prices of goods and the prices of acquisition, including tax amount.

At the same time the sales price is created according to the operating procedure (including depending on the demand and supply or taking into account the established allowances, discounts, remunerations, etc.).

c) for the companies of commission trade and the companies rendering intermediary services (including the exchanges, auctions) and other companies:

- the income from these activities determined in the form of commission and other charges;

d) for catering establishments:

- the income from self-produced sales of products, and also purchased (including import) goods, determined in the form of trade allowances and surcharges which are imposed to the prices of acquisition of these goods including tax;

e) for the construction, construction and repair and construction organizations - the cost of the realized works determined proceeding from contract prices.

The installation and construction works performed by economic method are equated to the works performed on the party and assessed with tax proceeding from the cost of the performed works.

2. On the inventory items (including to intangible assets) imported on the territory of the Republic of Moldova for determination of leviable turnover customs value is accepted (without the excise which is subject to payment on the goods assessed in the Republic of Moldova, the customs duties, charges and other payments established by the customs legislation).

3. Join in leviable turnover:

a) the realized goods received for (works, services)

- money from other companies and the organizations in the form of financial aid, replenishment of Special Purpose Funds or the increases directed to the account arrived, being at the command the companies;

- the amounts according to the procedure of payment by parts;

b) the amount of advance payments and advance payment on account of the forthcoming deliveries of goods (works, services).

Leviable turnover does not join the money enlisted in authorized capitals of the companies by his founders according to the procedure, established by the legislation of the Republic of Moldova, and also the funds transferred on target budget financing.

The means transferred into the corresponding accounts of the companies and organizations provided in budgets of different level on financing of target programs belong to the means of target budget financing which are not included in liable to the value added tax turnover.

4. In case of exchange of goods (works, services), by their transfer it is non-paid or with partial payment (below cost, and - acquisition low prices) leviable turnover is determined by goods purchased proceeding from the prices (rates) of the goods which developed at the company taking into account the demand and supply at the time of exchange or transfer, but not below actual cost, and on purchased - is not lower than acquisition value and costs on storage and realization.

In case of voluntary conveyance of goods (works, services) by the payer the party transferring them is.

In similar procedure leviable turnover when using in the company on the non-productive purposes of goods (works, services) of own production which cost does not belong on costs of production is determined.

5. In compensation cases or realization by the company to the population, including the workers, these goods through cash desk at the prices below cost leviable turnover is determined by goods (including own production) proceeding from the market prices (including the trade allowance) which developed at the time of realization, but not the low prices determined taking into account actual cost (or acquisition values of these goods) and expenses on covering of costs by storage and realization.

6. When purchasing of products by the companies at the population and its realization without conversion leviable turnover is determined in the form of difference between sales price and the price of its acquisition at the population. When using these products in production as raw materials or components
- proceeding from selling prices of the final goods made from it.

7. In case of production of goods (works, services) from raw materials supplied by the customer and materials leviable turnover is processing cost.

8. The cost of multireusable tare, including the glassware having mortgage cost does not join in leviable turnover of the implementable goods packaged in this container.

On such container leviable turnover at manufacturers of container is realization value to her buyers.

9. The internal turnover of products of semifinished products, works, services for industrial and production needs in one structural units to other structural units of the company are not leviable. It is necessary to understand the structural units which do not have the account in organization of bank and not realizing independently goods as structural units of the company (work, service).

V. The inventory (works, services), tax-exempt on value added

1. Are not assessed with the value added tax:

a) the exported goods (works, services, including transport) made in the Republic of Moldova and also imported in the republic on which tax it is estimated and paid to the budget when importing. In case of approval of the Government budget Parliament determines procedure for taxation on value added of goods (works, services) of national production exported to the State Parties of the CIS;

b) the goods (works, services) acquired by the diplomatic representations of foreign states accredited in the Republic of Moldova - on mutual basis (according to the Vienna convention on the diplomatic intercourses of 1961);

c) the imported raw materials, components, the processing and other equipment, vehicles (except cars);

The specified privilege regarding raw materials and components extends only to economic agents of the republic at whom the specified imported inventory items are used in products production process;

d) services in transportation of passengers;

It is necessary to understand services in their transportation by the companies as services in transportation of passengers (irrespective of patterns of ownership) all modes of transport;

e) rent, payment for accommodation in the hostel, utilities for the population, for the organizations and the organizations financed from the budget;

As a part of utilities their following types are considered:

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info