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Moldova will increase the maximum VAT refund limit for farmers in order to increase the number of beneficiaries of this program.

Moldova will increase the maximum VAT refund limit for farmers in order to increase the number of beneficiaries of this program.

In particular, the government approved the introduction of appropriate amendments to the current legislation, which will eliminate some legal conflicts that do not allow fully achieving the goal of the law to extend the VAT Refund Program for agricultural producers for another year. The government recalled that previously the implementation period for the VAT Refund Program for agricultural producers was extended by 1 year - until June 2024. At the same time, the maximum refund limit remained unchanged, limited to the amount of VAT intended for deduction for the subsequent financial period, reflected in the VAT return for financial period until December 2022. Representatives of the protesting farmers requested that this limit be reviewed and updated to the December 2023 situation due to the accumulation in 2023 of some amounts exceeding VAT and reaching the ceiling set in December 2022. To update the refund ceiling amendments were proposed. They will stipulate that the total amount of compensation for the period of validity of the VAT Refund Program cannot exceed the amount of VAT intended for deduction for the subsequent financial period, reflected in the VAT return for the financial period December 2022, increased by the positive difference between the amount of deductible VAT related to purchases, and the amount of VAT on supplies made in January-December 2023. Previously, the Association “The Power of Farmers asked the Moldovan authorities to cancel or at least double the VAT repayment ceiling so that more farmers receive a VAT refund, given that in the previously adopted law there is a refund cap that prevents farmers from being refunded VAT amounts in excess of what they were on January 1, 2023. This cap was originally set for 1 year of the repayment program. Many farmers reached this ceiling in the previous period and are now unable to benefit from the refund, even if they have significant amounts of VAT owed to them by the government. Farmers noted that in the second year of the program the ceiling would have to be either removed or doubled. // 20.03.2024 — InfoMarket

News on the subject

Thanks to participation in various exhibitions supported by Moldova Fruct Association and Invest Moldova Agency, Moldovan companies have established almost 200 new contacts and received $65 million from additional exports.
Thanks to participation in various exhibitions supported by Moldova Fruct Association and Invest Moldova Agency, Moldovan companies have established almost 200 new contacts and received $65 million from additional exports.
In Moldova has been created the Association of Vegetable Producers of Moldova.
In Moldova has been created the Association of Vegetable Producers of Moldova.
A new crediting instrument with a state guarantee of up to 1.6 million lei will be available for agrarians of Moldova starting March 15.
A new crediting instrument with a state guarantee of up to 1.6 million lei will be available for agrarians of Moldova starting March 15.
The deadline to apply for partial compensation for farmers affected by natural disasters in 2023 expires on March 15.
The deadline to apply for partial compensation for farmers affected by natural disasters in 2023 expires on March 15.
Moldova remains the leading supplier of sunflower seeds to the EU and in the period from July 1, 2023 to March 2, 2024, exported over 311.42 thousand tons there, which is 80.6% more than during the same period last season.
Moldova remains the leading supplier of sunflower seeds to the EU and in the period from July 1, 2023 to March 2, 2024, exported over 311.42 thousand tons there, which is 80.6% more than during the same period last season.
AIPA received 30 requests for subsidies for kg of cow milk in just 4 days after the start of the competition for subsidies for cow milk, worth 28.66 million lei.
AIPA received 30 requests for subsidies for kg of cow milk in just 4 days after the start of the competition for subsidies for cow milk, worth 28.66 million lei.