Moldova Publishes Clarification On Nil VAT Rate For Technical Assistance Projects

The Moldavian tax office announced that for services performed by subcontractors for the beneficiaries of technical assistance projects a nil VAT rate shall be applied. The State Tax Service published a written clarification on 22 June 2017 with details on the specific application that is to be prepared.

Based on article 104 (c1) of the Tax Code (TC), the State Tax Service explained that in case of imports and supplies of goods and services for projects related with technical assistance and investment located on the territory of Moldova, the transactions shall be subject to a nil VAT rate.

The above shall be applied in cases when resident VAT registered taxpayers deliver goods and/or provide services to the following parties: