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AmCham Moldova asks the Chisinau mayor’s office to specify the procedure for applying the local tax for online stores.

AmCham Moldova asks the Chisinau mayor’s office to specify the procedure for applying the local tax for online stores.

The organization sent a corresponding appeal to the Mayor General of Chisinau, Ion Ceban. According to the decision approved by the Municipal Council on the application of local tax rates for 2021, the fee for online stores is set at 5 thousand lei, while an exemption from 50% of this amount is provided for online stores that have notified about their activities for the first time. AmCham asked to clarify whether this exemption applies to legal entities that first notified about the activities of the online store, or whether it is the first year from the date of actual registration of the legal entity. AmCham also notes the lack of a clear understanding of how the local fee for online trading will be applied, and also points out that there is no methodology for applying this fee. AmCham considers that the tax on business units and the tax on online trade should be mutually exclusive, otherwise, the legal entity that decides to trade online too, will have to pay a double fee: for the physical store (depending on the retail space), and for the opportunity to work online, as well. There are other difficulties that indicate that the chosen model of taxation for online trading is incorrect, and companies pay double taxes. In this regard, AmCham is requesting a round of consultations with the business community regarding the process of applying the local tax on online commerce and the development of a clear and fair methodology. “Stimulating e-commerce is imperative to reduce traditional ways of shopping (markets, malls, supermarkets, etc.), at least during the pandemic, when the risk of COVID-19 infection in crowded places increases significantly, even if observance of all epidemiological rules is carried out ", - emphasize in AmCham. // 18.03.2021 - InfoMarket.

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