The agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Moldova on the principles of collection of indirect taxes during the exporting and commodity import (works, services)

of June 12, 1997

The government of the Republic of Kazakhstan and the Government of the Republic of Moldova which are hereinafter referred to as the Party, aiming at further deepening of integration of economy, establishment of equal opportunities for business entities and to creation of conditions for fair competition, being guided by the commonly accepted regulations and rules of international trade,

agreed as follows:

Article 1 General determinations

For the purpose of this agreement:

a) the term "indirect taxes" means the value added tax and excise (the excise tax or collection);

b) the term "zero rate" means taxation on value added at the rate of 0% that is provided by the procedure established by the legislation on taxes of the Parties;

c) the term "principle of destination" means application of zero rate in case of commodity export (works, services) from customs area of one Party and taxation when importing on the effective rate established by the domestic legislation of other Party;

d) the term "competent authorities" means from the Moldavian Side the Ministry of Finance of the Republic of Moldova, from the Kazakhstan Side the Ministry of Finance of the Republic of Kazakhstan.

The article 2 Principle of Collection of Taxes when exporting

One Party will assess with the value added taxes on zero rate the goods (works, services) exported on the territory of other Party, export will not be assessed with the excise tax.

The article 3 Principle of Collection of Taxes when importing

1. The goods imported on the territory of one of the Parties (work, service) which are exported from the territory of other Party are assessed with indirect taxes in the country of the importer according to its legislation. Taxation will be performed by customs authorities in case of commodity importation on customs area of this Party.

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