Frequently asked questions about Republic of Moldova VAT
What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied in the Republic of Moldova. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Where a foreign organization (such as Zoom) provides electronically supplied services to customers that are not a business in the Republic of Moldova, there is a requirement for Zoom to collect VAT on the supplies and remit the VAT to the State Tax Service of The Republic of Moldova.
If you are a business customer, you should provide your Moldovan TIN to Zoom. If the TIN is valid and indicates that you are a business customer then no VAT will be charged on the supplies made to you by Zoom.
Why am I being charged VAT?
Video conferencing services and telecommunication supplied by Zoom fall within the VAT on e-commerce rules concerning electronically supplied services by non-resident service providers to individuals in the Republic of Moldova.
If you are a business in the Republic of Moldova, you should provide your TIN to Zoom (see ‘How do I enter my Tax Identification Number (TIN)?’ below for details on how to do this). If the TIN is valid and indicates that you are a business customer, then no VAT will be charged on the supplies made to you by Zoom. If you do not have a valid TIN or have a TIN that does not indicate that you are a business customer, then VAT will be charged on the supplies made to you by Zoom.
What is a Tax Identification Number (TIN)?
A Tax Identification Number (TIN) is a unique number issued by the State Tax Service of The Republic of Moldova to taxpayers in the Republic of Moldova in the format [1234567890123].
Does Zoom have a TIN?
Yes. Zoom’s TIN will be shown on the invoice it issues to you.
How do I enter my TIN?
To provide your TIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer TINs to ensure that the TIN remains valid. If, during these periodic validations, it is identified that your TIN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid TIN is provided.
You are required to notify us if there is a change to your business registration status.
- Sign in to the Zoom web portal.
- In the navigation menu, click Plans and Billing then Billing Management.
- In the Contact Information section, click Edit.
- If selected, clear the Non-Business Customer check box.
- Enter your TIN.
- Click Save.
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Click the Billing Information tab.
- To the right of Sold To Contact, click Edit.
- If selected, clear the Non-Business Customer check box.
- Enter your TIN.
- Click Save Changes.
How is Zoom determining which customers VAT applies to?
If a customer's ‘Sold To’ location is in the Republic of Moldova, and the customer has not provided a valid Moldovan TIN that indicates that you are a business customer, Zoom will charge VAT on its invoices.
This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.
Is there a minimum threshold purchase amount before VAT is applied?
No, where a customer in the Republic of Moldova has not provided a valid Moldovan TIN that indicates you are a business customer, Zoom will charge VAT on all supplies made to you.
Are there any special exemptions applicable for charities or other business organizations under which VAT may not be charged?
There are no VAT exemptions applicable to non-profit organizations or international agencies in the Republic of Moldova. If you have any questions regarding tax exemption in the Republic of Moldova, please contact Billing.
Are there any VAT obligations for me as a customer?
If you have provided a valid TIN to Zoom that indicates you are a business customer, no VAT will be charged on the supplies made to you. However, you may be required to declare and pay VAT under the “reverse charge” mechanism in your VAT return.
There is no VAT obligation for individuals in the Republic of Moldova. However, Zoom will charge VAT on its supplies to you.
What if I have a TIN and forget to enter it?
The TIN can be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid TIN is entered at the time the next invoice is issued, VAT will be charged until a valid TIN is entered.
If a valid TIN is entered and VAT has previously been charged on the invoices issued to you, then upon request by you, Zoom may refund any VAT included on invoices issued in the thirty days prior to a valid TIN being provided. However, VAT will not be refunded on any invoices issued outside of this thirty-day period.
Decision tree – My “Sold To” address is the Republic of Moldova, will I be charged VAT?
Disclaimer
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules in the Republic of Moldova. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.