ACT OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

of May 19, 2009 No. 10/2-06-134

Methodical instructions about procedure for reflection in financial accounting of the expenses and the VAT belonging to services in letting of real estate and utilities

The Ministry of Finance explains procedure for reflection of transactions on letting of property, giving opportunity of application of two options of accounting in case of the statement of tax delivery note by the lessor with indication of the expenses connected with the utilities consumed by the employer.

Option I. In case of refakturirovaniye of the expenses connected with the utilities (water, electro-and heat power, gas, etc.) compensated by the employer.

At the lessor

The lessor based on the tax delivery notes received from suppliers of utilities and on the debit of account 534 "Obligations by calculations with the budget" will reflect the VAT amount relating to the cost of the services consumed by it in the Register of purchases.

Reflection in tax delivery note of refakturiruyemy expenses and the VAT on them is performed according to Article 117/1 of the Tax Code. In case of the statement to the employer of tax delivery note on service in hiring the lessor will reflect in it the cost of the compensated services and the VAT amount relating to them (on separate line), and in the Register of sales and on account 534 credit "Obligations by calculations with the budget" will reflect only the VAT amount estimated from the cost of service in hiring.

In financial accounting of transaction on hiring and the expenses compensated by the employer on utilities will be reflected as follows:

1) Reflection of receivables of the lessor for service in hiring:

- Дт 228 "Short-term receivables on imputed incomes" - on the cost of service in hiring, including the VAT;

- Кт 611th "Sales returns" - or 612 "Other operating incomes" - on the cost of service in hiring excluding VAT;

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