VAT Refund Procedure for Diplomatic Missions, Consular Offices, and International Organizations Accredited in Republic of Moldova (residents only)

Article 101⁵ of the Tax Code establishes the right to refund VAT amounts related to purchases of goods and/or services intended for official use by diplomatic missions, consular offices, and representations of international organizations accredited in the Republic of Moldova, as well as goods and services intended for personal use or consumption by members of the staff of these diplomatic missions, consular offices or representations of international organizations, and by members of their families who live with them, according to the procedure established by the Government of the Republic of Moldova.

The refund of VAT amounts to the subjects mentioned in Article 101⁵ of the Tax Code is carried out based on international treaties and the principle of reciprocity, in accordance with the Regulation on VAT refund, approved by Government Decision No. 543 of 08.07.2014, for purchases with VAT applied by local suppliers and based on the list compiled and approved by the Ministry of Foreign Affairs of the Republic of Moldova.

Thus, the Regulation on VAT refund related to purchases specified in Article 101⁵ of the Tax Code, approved by Government Decision No. 543 of 08.07.2014, establishes the procedure and method for requesting and granting VAT refunds. - HG543/2014

Who Can Request VAT Refunds?

The right to VAT refund applies to the following entities:

1. Diplomatic missions accredited in the Republic of Moldova
2. Consular offices accredited in the Republic of Moldova
3. Representations of international organizations accredited in the Republic of Moldova
4. Members of the staff of these entities and members of their families who live with them

It is important to note that this benefit does not apply to:

• Citizens of the Republic of Moldova
• Foreign citizens or stateless persons with permanent residence in the Republic of Moldova

Which Purchases Qualify for VAT Refund?

Two types of purchases qualify for VAT refund:

1. Purchases for official use: Goods and services purchased for the official activities of diplomatic missions, consular offices, and international organizations.
2. Purchases for personal use: Goods and services for the personal use or consumption of members of the staff of these entities and members of their families.

For purchases intended for personal consumption, there is a monthly limit: the maximum monthly amount of purchases (including VAT) eligible for refund cannot exceed 2 average monthly salaries in the economy forecasted for that year, per person.

How to Apply for VAT Refund

The process works as follows:

1. When diplomatic missions make purchases, suppliers registered as VAT payers must calculate VAT according to the rates established in Article 96 of the Tax Code and issue fiscal invoices.
2. For retail purchases paid by staff in cash or by bank card, the buyer should request a fiscal receipt from the supplier.
3. The diplomatic mission, consular office, or international organization submits a VAT refund application to the subdivision of the State Tax Service, confirmed by the head of the entity.
4. The application is submitted in free form, indicating the VAT amount requested for refund and the bank accounts to which it should be transferred.
5. The application must be submitted separately for each calendar month, after its completion, by the end of the following month. Documents relating to a particular month that were not submitted within the established period may be additionally submitted, in a separate list, in parallel with the documents for December of the reference year.

Required Documentation

The VAT refund application must be accompanied by:

1. The list of goods and services purchased in the reference month, prepared according to the form in the annex to the Regulation.
2. Documents confirming the purchase of goods and services:

• For official use: the original fiscal invoice received from the VAT taxable entity.
• For personal use: the original cash receipt issued by the cash and control equipment of the VAT taxable entity (for cash or bank card payments).

At the applicant's request, the original fiscal invoice with the State Tax Service's notation on accepting the VAT refund is returned to the applicant, and a copy is filed.

In the case of using e-invoices, physical documents do not need to be presented. Instead, the VAT refund application must indicate the series, number, date of issuance, and date of delivery of the invoice.

Processing and Payment Deadline

The VAT refund process takes a maximum of 27 working days from the date of submission of the refund application:

• 20 days for the examination of materials presented by the subdivision of the State Tax Service
• 7 days for the State Treasury to make the respective refund

The VAT amounts accepted for refund are transferred to the accounts indicated in the applications of diplomatic missions, consular offices, or international organizations, opened in licensed banks of the Republic of Moldova.