Unification of the VAT rate for the supply of agricultural raw materials, fertilizers and plant protection products at the level of 12% is not provided for in the tax policy for 2021. 22.12.2020

The final version of the bill, which includes tax policy measures for 2021, published in Monitorul Oficial (the Official Journal of Moldova), does not provide for any changes in this area. Let us recall that the Ministry of Finance proposed to reduce the VAT rate on fertilizers and plant protection products from 20% to 12%, while simultaneously increasing the VAT rate on the supply of agricultural products from 8% to 12%. At the same time, the bill provides for an extension until September 30, 2021 of the implementation period for the VAT refund program for agricultural producers affected by natural disasters. There are also special conditions for farmers. So, starting from January 1, 2021, for agricultural producers affected by natural disasters, the amount of VAT refund will be the total amount of land tax on agricultural land paid for 2021, and the amount of income tax paid on wages, compulsory state social insurance contributions paid by the employer, compulsory health insurance contributions paid by the employee for the tax period and / or tax periods that correspond to the period of the VAT refund program. At the same time, it was agreed that the total amount of the refund should not exceed the amount of VAT provided for the subsequent period indicated in the VAT declaration for the tax period of December 2020. // 22.12.2020 – InfoMarket