VIDEO // Fiscal Policy of Moldova for 2027: Zero value added tax on higher electricity consumption, benefits for families, farmers, investors

The draft fiscal and customs policy for 2027 has been prepared for its second reading after the examination of more than 70 parliamentary amendments and over 110 requests from the business community and other participants in the consultations. The proposed changes include expanding the amount of electricity exempt from value added tax (VAT) for household consumers, increasing personal allowances for certain categories of taxpayers and introducing incentives for investments in renewable energy.

Marcel Spatari, the head of the parliamentary commission for economy, budget and finance, said that the changes had been made following discussions and the examination of the proposals received.

“We examined more than 70 parliamentary amendments and over 110 requests from the business community and other participants in the consultations. We discussed them, weighed the arguments and made changes,” said Marcel Spatari.

One of the proposed changes concerns electricity consumption. The amount of electricity for which household consumers will not have to pay VAT is expected to increase from 100 to 150 kilowatt-hours per month, compared with the initial version of the draft.

The draft also provides for an annual increase of 6,660 lei in the personal allowance for taxpayers eligible for the increased allowance, including people with severe and significant disabilities. For each dependent, including children, the allowance is expected to increase by 1,140 lei annually. These amounts are deducted from taxable income, allowing beneficiaries to pay less income tax.

The changes also aim to support sports. Expenses for sports services will be deductible from income tax within the limits established by law. At the same time, more sports schools, federations and organizations will be able to receive donated equipment without paying VAT and customs duties.

In the field of social assistance, the VAT exemption for goods and services meant for the construction and operation of institutions in this sector has been retained. According to Spatari, the initial version of the draft removed this benefit and required eligible non-commercial organizations to pay VAT on these goods and services.

For farmers, the draft maintains the 8 per cent VAT rate for wheat, corn and sunflower seeds throughout 2027. A reverse-charge mechanism will also be introduced for certain agricultural products in domestic transactions between VAT payers. In this case, VAT will no longer be effectively transferred between the buyer and the seller, which, according to the chairman of the parliamentary commission, will reduce the cash requirements for these transactions.

Another measure concerns investments in renewable energy and storage batteries. Eligible investors will be able to defer payment of customs obligations for imported batteries for up to 20 months. If the investment is commissioned and the legal requirements are met, the respective obligations may be cancelled.

“Through this reform, we want to simplify the rules, encourage investment and ensure a fairer contribution to the state budget,” said Marcel Spatari.

According to him, the tax reform will make it possible to finance compensation payments and increase salaries in the public sector. The draft is to be put to a vote in parliament.





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