The Cabinet of Ministers is against reducing the VAT rate on goods sold through online stores to 12%.
The government's conclusion notes that the provision of such a benefit to online stores is associated with a significant impact on the budget, the parameters of which will need to be revised, namely, to reduce costs or identify new sources of funding. This measure also requires a more complex analysis from the point of view of administration and application in practice, especially given that the Tax Code provides for various benefits. For example, goods for children are exempt from VAT, and some social goods, such as milk or bread, are subject to a reduced VAT rate (8%). "Different tax regime for the same product, depending on the conditions of sale, creates conditions for disloyal competition," the government said in its conclusion. Let us recall that the initiative to apply VAT at a rate of 12% for e-commerce transactions was proposed by the Action and Solidarity Party (PAS), whose MPs consider that e-commerce is developing very slowly in Moldova - it accounts for about 1% of the total sales volume. The authors of the initiative believe that the use of a reduced VAT rate will stimulate the development of online commerce, and online stores will no longer practice shadow economy. // 15.12.2020 - InfoMarket.
