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Expert: three main questions about the problem of foreign marketplaces

There has recently been a heated discussion as to whether the rules for the taxation of online orders from major international trading platforms should be changed. It was even stated that the Ministry of Finance intends to change these rules at the same time as it develops the budget and tax policy for the next year. Later, the Government spokesman issued his own statement on the subject, taking a different point of view. There were also those who tried to shift the issue to the political plane, linking it to the upcoming parliamentary elections.
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Expert: three main questions about the problem of foreign marketplaces

In the end, everyone had their own opinion: some – that tax rules should be changed, others – that it is not necessary to do so, others – that the issue is political, and after the elections they will return to it. Each opinion has the right to life, but I personally believe that this issue should be approached with maximum objectivity, pragmatism and professionalism. This means that we should try to answer at least a few questions.

The first question: will the state lose or gain from the introduction of VAT and customs duties on parcels with goods purchased on international trading platforms, regardless of their value? Answer: obviously, it will win. According to business representatives’ estimates, the state currently loses about 100 million euros annually due to the non-application of VAT and the aforementioned customs duties. For example, this amount would allow each pensioner in Moldova to receive an annual pension supplement of about 3000 lei. Or to build a modern infrastructural object of national importance every year. And the most interesting thing is that this amount will increase every year. For example, in 2025, the number of parcels with goods ordered online on international trading platforms will increase by about 40%. Thus, we can conclude that in 2025 alone, the budget will be short of 140 million euros in additional revenues.

The second question is: will the business environment lose or gain from the introduction of new taxation rules for parcels ordered online on international trading platforms? Although in the case of the business environment it is not quite correct to use expressions like “will lose” or “will win”. It would be more correct to say that some equality will be restored, more or less equal conditions of competition will be created. It is natural to ensure this in a state with a market economy. And if equal conditions of competition are ensured, the business environment will develop, which means new taxes to the state budget and new jobs. And vice versa, if equal conditions of competition are not provided, the volume of taxes to the state budget will decrease, the number of jobs will decrease, and the number of those who will go abroad in search of work (because they will no longer have it at home) will increase.

The third question: will citizens lose or gain if the rules of taxation of online orders on major international trading platforms change? At first glance – they will lose. After all, if from each parcel will be paid VAT at the rate of 20% (now VAT does not apply to parcels worth less than 150 euros), then, subject to payment of customs duties, everyone who places an order on an international trading platform will pay about 30% more.

But on closer analysis, it becomes clear that citizens will win. Or, the more the state wins (we explained above how this can happen), the more opportunities there will be for social support of the population and realization of infrastructure projects that people need. Not to mention the preservation of jobs, which will allow citizens to find employment at home rather than going abroad.

And if we add to this that a change in the government’s approach will also ensure a higher level of quality control of products and goods ordered on international trading platforms, we conclude that citizens will also benefit from this point of view. Currently, many goods and products imported into Moldova in this way pose a real risk to human health, and at the moment there is no mechanism of control and possibility to combat this risk.

It is obvious that the introduction of new rules of taxation of orders placed on international trading platforms will bring only positive results. Even if people will pay a little more than they do now. And it is equally obvious that sooner or later decision-makers will have to discuss this issue in the most serious way and make the necessary decisions.

Especially since this issue is also being seriously considered at the international level, including the European Union, of which Moldova aspires to be a part. Perhaps, this is not the right time, because we have elections and there is a risk of speculations. But the elections will pass, but the problem will remain. And it will have to be solved.

Mihai Moraru,
Coment.md analyst


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