The Law on the VAT Refund Program for agricultural producers took effect.
The relevant law was published on December 23 in Monitorul Oficial (the Official Journal of Moldova) and took effect. The law establishes that the subjects of the VAT refund program are businesses engaged in agricultural activities that are registered as VAT payers and registered amounts of VAT to be deducted in the subsequent tax period. It is established that enterprises for which at least 95% of activities carried out during 2022 represent one or more relevant activities in the agricultural sector (cultivation of perennial and non-perennial crops, nursery production, animal husbandry, mixed farming, agricultural support activities and post-harvest activities) and which have suffered losses due to the embargo imposed by Russia on imports of plant-based products, are eligible for participation in the program. VAT refunds will be available from April 2022 to June 2023 inclusive. According to the program, the amount of VAT refund will be the lowest of the two: the amount of VAT to be deducted in the subsequent tax period, registered for the last tax period for VAT, or the value consisting of the amount of land tax on agricultural land, calculated and declared for 2022, the declared amount of income tax, mandatory state social insurance premiums and mandatory health insurance premiums, calculated as a percentage of wages and other payments - for the tax period and/or tax periods that correspond to the Program period. VAT refund will be made based on the application of agricultural producers filed with the State Tax Service. The law stipulates that the total refundable amount for the period of the VAT refund program shall not exceed the amount of VAT deductible for the next tax period as stated in the VAT return for the tax period of December 2021. The amount of VAT provided for the next tax period will be reduced by the refunded amount of VAT. //23.12.2022 - InfoMarket.
