These and other provisions have been included in the new version of Section IV, “Excise Taxes,” of the Tax Code. The ministry has completed its final revisions. It will take effect after Moldova joins the EU.
Following several rounds of public consultations with representatives of professional and business associations, the Ministry of Finance presented the final draft of the Law Amending Section IV of the Tax Code. The document completely updates the section and brings the rules for collecting excise taxes into line with European Union legislation. After Moldova’s accession to the EU, the section will take effect under the new title “Harmonized Excise Taxes.”
The document provides for a number of new rules and definitions that will apply to the administration of excise taxes. Overall, the process will be simplified. A provision has been drafted regarding violations that arise during the movement of excise goods. Clarifications have been provided regarding where a company is required to pay excise tax in such cases.
The concept of a mechanism for suspending excise tax payments is being introduced. This is a regime applied during the production, processing, storage, warehousing, or movement of excise goods, under which the excise tax is suspended and levied at the time the goods are released for consumption, rather than at intermediate stages.
IT systems will reduce bureaucracy and business costs
The introduction of an integrated electronic system for the movement of excise goods between member states is also planned. This will help reduce red tape and minimize administrative costs for businesses. Goods imported under the excise tax suspension procedure will be required to be covered by cash guarantees.
Requirements for the operation of tax warehouses and the status of participants in such operations are also specified. The movement of excise goods will be accompanied by electronic documents. Rules regarding product labeling, the provision of guarantees, excise tax refunds, and other special procedures are also being revised.
In addition, excise taxpayers for certain types of alcoholic and tobacco products will be required to conduct an inventory of their stocks following the rate increase. Based on the remaining stock, they will need to calculate and pay the difference between the new and previous rates.
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