On Thursday, February 5, the Parliament adopted in the first reading the draft law of the Our Party faction, which envisages raising the threshold of mandatory VAT registration to LE 3.2 million.
Eighty-five MPs voted in favor of the bill in the first reading. Parliament Speaker Igor Grosu called the result a “phenomenon”, stressing that the second reading is still ahead.
The chairman of the Commission for Economy, Budget and Finance, Radu Marian, explained that the support for the bill was “conceptual”. He said that the government partially supported the initiative and proposed to set the threshold of VAT payers’ registration at 1.7 million lei, noting that a similar approach is applied in the European Union countries.
Other realities for Moldovan business
One of the authors of the draft law, MP Constantin Cuiumju, said that Moldova is in different economic conditions than the EU countries, with a lower level of capitalization and economic stability. He noted that in recent years, the situation for businesses has been complicated by a series of economic shocks, including the energy crisis.
However, the MP said that even the 1.7 million lei threshold would be a positive step, which would ease the burden on businesses, especially on micro-enterprises.
For its part, the Finance Ministry recalls that from January 1, 2026, the threshold of VAT payers’ registration in Moldova was raised from 1.2 million to 1.5 million lei. This means that if, as of December 31 of the previous tax period, the income from supplies exempted from VAT without the right to deduction exceeds 1.5 million lei, the entities will be obliged to apply the general taxation regime established by law.
The draft amendments to the Tax Code, meant to raise the threshold of VAT payers’ registration, are to be approved in the second reading, taking into account the government’s conclusion. In whatever form it is adopted, it will be applied already in the current tax period.
