Amcham Moldova invites the authorities to establish a single reduced VAT rate for all agri-food products.
The American Chamber of Commerce in Moldova sent such a proposal to the authorities in a package of legislative changes for the draft fiscal policy for 2022. In particular, the organization proposes to revise Article 96 of the Tax Code, which determines the size of the standard and reduced VAT rates for various categories of goods and services. Taking into account the experience of the EU states, Amcham Moldova considers it necessary to establish a reduced uniform VAT rate for all goods in the food chain. The organization notes that in the EU countries the practice of setting a reduced VAT rate on food products is widespread, since these products are vital for the population. At the same time, Directive 2006/112 / CE recommends EU member states to apply reduced rates for food products, including drinks (other than alcoholic beverages) intended for human and animal consumption; as well as live animals, seeds, plants and ingredients commonly used in food preparation; products used to supplement or replace food; for the supply of goods and the provision of services used in agricultural production, with the exception of capital goods such as machinery or buildings. The size of the VAT rate on food products in different countries differs - from 3% to 18%, and the average in the EU is 9%. Herewith, in some EU countries such products are completely exempted from VAT (0%). For example, as of January 1, 2021 / the VAT rate on agro-food products in the UK, Ireland and Malta was 0%, in Luxembourg - 3%, in Spain - and Italy - 4%, in Croatia and Poland - 5%, in France - 5.5%, in Holland - 6%, in Germany - 7%, from Romania - 9%, in the Czech Republic, Austria, Finland - 10%, in Sweden - 12%, Portugal and Greece - 13%. In accordance with the Tax Code of Moldova, the standard VAT rate in our country is 20%. A reduced rate applies to certain categories of goods and services. For example, VAT in the amount of 8% applies to bread and bakery products, livestock products in natural form, live weight, crop and horticultural products in natural form, produced, imported and / or supplied to the territory, sugar from sugar beets produced, imported and / or supplied on the territory of Moldova. For food and / or drinks, with the exception of alcoholic products, prepared or unprepared for human consumption, together with related services allowing their immediate consumption, carried out within the framework of activities classified in Section I of the Classifier of Economic Activities of Moldova, is applied - 12% VAT rate. // 20.09.2021 — InfoMarket
