Moldovan Parliament has passed in the second reading a law providing for the introduction of reverse VAT charging on the electricity and gas market
In particular, MPs-approved amendments to the Tax Code and the Law on the Implementation of Section III of the Tax Code provide for reverse taxation applicable to the supply of certain energy products. According to State Secretary of the Ministry of Energy Constantin Borosan, the amendments simplify the activities of suppliers and traders in the energy market by eliminating the administrative burden of VAT administration, which stimulates competition and the emergence of alternative suppliers, including from European Union countries, and competition leads to competitive prices for energy resources. According to him, VAT is levied on the retail market when electricity and natural gas are supplied to end-users for consumption, while transactions for the import and sale of electricity and natural gas on the wholesale market—between traders and suppliers, between producers and suppliers, on the energy exchange—do not involve VAT administration. “The mechanism is neutral from a fiscal point of view. The state budget collects the same revenues in both models, but reverse taxation is much simpler,” clarified Constantin Borosan. He noted that Moldova has thus moved closer to the EU tax regime model, which is a prerequisite for our country's integration into the single European energy market. This aspect was also one of the conclusions of the Electricity Forum organized by the Energy Community in early June 2025. The need to eliminate double taxation in cross-border transactions and harmonize VAT regimes in the member countries of the Energy Community has been on the Energy Community's agenda since 2015. The amendments adopted by the Moldovan Parliament, which provide for the introduction of reverse VAT charging in the electricity and gas markets, will enter into force on January 1, 2026. // 16.06.2025 — InfoMarket
