Three separate monetary thresholds govern three entirely different tax regimes in Moldova, yet founders — particularly those arriving from EU jurisdictions with a single VAT registration number — routinely treat them as interchangeable. The confusion is understandable: all three figures appear in conversations about Moldovan tax, and conflating them produces real compliance errors. This post separates them clearly, then works through what VAT registration means operationally for a foreign-owned societate cu răspundere limitată.
The three thresholds founders confuse
The first threshold is the VAT registration threshold: MDL 1.7 million in taxable supplies over any consecutive 12-month period. Crossing this figure — or expecting to cross it — triggers a mandatory registration obligation under Title III of the Codul Fiscal al Republicii Moldova (Law 1163/1997). As of March 2026 the threshold is 1.7M MDL, revised upward from 1.5M MDL (which itself came into force in January 2026). This figure governs only VAT; it has no bearing on corporate income tax liability or the choice of tax regime.
The second threshold is the 0% reinvested-profits eligibility cap: MDL 100 million in annual turnover, combined with a headcount ceiling of 249 employees. This is entirely a CIT concept. An SRL below this threshold may qualify for the deferred-tax treatment under which undistributed profits are taxed at 0% CIT, with tax arising only on dividend distributions. The 100M MDL cap is roughly 59 times larger than the VAT threshold. An SRL can be a mandatory VAT registrant at MDL 2M turnover while simultaneously qualifying for the 0% reinvested-profits regime — these conditions operate on different axes.
The third threshold is the simplified 4% turnover regime cap: MDL 1.5 million. This is the ceiling for the simplified corporate income tax option available to micro-enterprises that choose to compute CIT as 4% of gross turnover rather than 12% of taxable profit. The 4% regime and the 0% reinvested-profits regime are mutually exclusive; an SRL elects one or the other. Notably, the 4% cap (1.5M MDL) is close to the previous VAT threshold (also 1.5M MDL until January 2026), which reinforced the confusion. Following the VAT threshold revision to 1.7M MDL in March 2026, the two figures have diverged, but the conflation persists.
A company can be a mandatory VAT registrant, eligible for the 0% reinvested-profits regime, and ineligible for the 4% simplified regime — all at once, without contradiction.
When VAT registration becomes mandatory
Under Title III of the Codul Fiscal (specifically Article 112), an SRL must register for VAT with the Serviciul Fiscal de Stat (SFS) when its taxable supplies in any consecutive 12-month period reach or are expected to reach MDL 1.7 million. The full registration framework, including the list of taxable, exempt, and zero-rated supplies, is set out in Articles 95 to 103 of the Codul Fiscal. The test is rolling, not calendar-year: a company that crosses the threshold in, say, October must apply for registration immediately, not at the start of the following year.
Taxable supplies for this purpose include the sale of goods and services in Moldova at the standard 20% rate, reduced-rate supplies, and zero-rated exports. Exempt supplies — such as financial services and certain educational services — do not count toward the threshold. An SRL selling software subscriptions to Moldovan business customers counts each invoice toward the threshold; an SRL that exports 100% of its software to non-resident clients may remain below threshold indefinitely, since exports are zero-rated rather than exempt.
The registration application is submitted electronically through the SFS portal. SFS must process it within three working days. Once registered, the SRL receives a TVA identification number and is enrolled in the periodic filing cycle.
Voluntary early registration
An SRL may register voluntarily before reaching the threshold. Some businesses choose this for commercial reasons: a registered VAT number signals a certain scale to Moldovan B2B customers, and early registration means the SRL can reclaim input VAT on purchases from day one, including on significant start-up expenditure such as office equipment, software licences, and professional services.
Voluntary registration carries the same compliance obligations as mandatory registration. The SFS can refuse a voluntary application if it concludes the SRL lacks genuine commercial activity, so the decision should be taken with a clear picture of expected revenue and legitimate input VAT recovery in view.
Operational consequences of being VAT-registered
Once registered, the SRL must:
- Charge 20% VAT on all standard-rated supplies and issue compliant tax invoices (factura fiscală) through the SFS electronic invoicing platform
- Submit periodic VAT returns to SFS — monthly for larger registrants, quarterly for others (the SFS determines the cycle based on the company's turnover profile)
- Remit net VAT (output VAT minus recoverable input VAT) to the state by the filing deadline
- Maintain a VAT accounting register and preserve supporting invoices for the statutory retention period
Input VAT recovery is the offsetting benefit. An SRL paying 20% VAT on a server hosting invoice from a Moldovan provider can deduct that amount against its output VAT liability. For capital-intensive operations — a company fitting out a Chișinău office or buying equipment — the recovery mechanism can produce net VAT refund positions in the early months.
The practical burden is the monthly or quarterly compliance cadence. Late filing attracts penalties under the Codul Fiscal, and errors in the electronic invoice system are visible to SFS in real time. Most foreign-owned SRLs use a local licensed accountant (*contabil autorizat*) or accounting firm to manage the VAT filing cycle; the cost is modest relative to the penalty exposure of non-compliance.
Digital services and the reverse charge
For foreign-owned SRLs with cross-border service flows, the reverse charge mechanism is the critical concept. When a Moldovan SRL receives services from a foreign supplier — an EU SaaS platform, a French design agency, an Estonian software contractor — the SRL rather than the supplier accounts for Moldovan VAT under the reverse charge. The SRL treats itself as both supplier and customer for VAT purposes: it records output VAT at 20% and, if the services are used for taxable business purposes, simultaneously reclaims the same amount as input VAT. The net cash effect is often zero, but the filing obligation exists regardless.
Conversely, when a Moldovan SRL sells digital services to VAT-registered business customers in EU member states, the transaction is typically outside the scope of Moldovan VAT (the place of supply is the customer's country). The EU customer accounts for the VAT under its own reverse charge rules, and the related-party pricing of any intercompany flows should be documented separately from the VAT analysis. The Moldovan SRL should retain evidence of the customer's EU VAT number and the B2B nature of the supply to support the zero-rate position.
For sales to EU consumers (B2C), the rules are more complex and depend on whether the SRL exceeds the relevant EU registration thresholds or uses the EU OSS scheme — a question for EU tax counsel, not solely Moldovan law.
MITP residents and VAT
A common misconception deserves direct correction: the 7% single tax paid by Moldova IT Park (MITP) residents is not a VAT substitute. The MITP regime replaces CIT, personal income tax on salaries, social contributions, medical insurance contributions, and certain local taxes — it does not cover VAT. MITP residents are subject to exactly the same VAT rules as standard CIT payers.
An MITP-registered SRL with Moldovan-source taxable supplies above MDL 1.7M must register for VAT, file periodic returns with SFS, and charge 20% VAT to its customers in the same way as any other Moldovan registrant. The per-employee floor of MDL 5,220 per month for 2026 and the 7% turnover calculation are computed and filed separately from the VAT cycle.
This matters particularly for MITP residents that also provide services to Moldovan domestic customers: the 7% is computed on gross turnover, and 20% VAT is charged on top of the invoice price to the customer. Both obligations run in parallel.
For a broader view of how Moldovan accounting and fiscal obligations fit together, see our accounting guide and fiscal law overview. For the MITP regime in detail, including the eligibility criteria and the per-employee floor mechanics, see our MITP 7% tax guide.
If your SRL is approaching or has crossed the VAT threshold, or if you are evaluating the VAT implications of a new revenue stream, our VAT registration decision tool maps the threshold position to the registration obligation, and the VAT filing mechanics are straightforward to implement with the right local support in place. Contact us via /en/contact-us/ or see the formation process at /en/company-formation-moldova/.
Frequently asked questions
What is the VAT registration threshold for Moldovan SRLs in 2026?
The threshold is MDL 1.7 million in taxable supplies over any consecutive 12-month period, in force from March 2026. It was raised from MDL 1.5 million, which itself only took effect in January 2026. The threshold is set under Title III of the Codul Fiscal and is the same for resident-owned and foreign-owned SRLs.
How is the rolling 12-month turnover threshold measured?
The test is rolling, not calendar-year. At the end of each month, the SRL adds the taxable supplies of the preceding twelve months. If that total reaches MDL 1.7 million, the registration obligation arises immediately and the SRL must apply within the deadline set by SFS. Exempt supplies are excluded from the count; standard-rated, reduced-rate, and zero-rated exports are included.
Can a non-resident-owned SRL voluntarily register for VAT below the threshold?
Yes. Voluntary registration is available under the Codul Fiscal and is open to SRLs regardless of the shareholder's residence. SFS retains discretion to refuse a voluntary application where it concludes the SRL has no genuine commercial activity, so the application should be supported by evidence of trading or imminent revenue and a clear input VAT recovery rationale.
Does MITP exempt my SRL from VAT?
No. The 7% Moldova IT Park single tax substitutes for CIT, payroll tax, and social contributions, but does not displace VAT. An MITP resident with taxable supplies above MDL 1.7 million is subject to the same registration, invoicing, and filing obligations as any other Moldovan registrant, and charges 20% VAT on top of its invoice price to domestic customers.
How does VAT work for B2B digital services to EU customers?
When a Moldovan SRL supplies services to a VAT-registered business customer in an EU member state, the place of supply is generally the customer's country and the transaction sits outside Moldovan VAT. The EU customer accounts for the tax under its own reverse charge. The Moldovan SRL should retain the customer's EU VAT number and evidence of the business-to-business character of the supply to support its position with SFS.
What is the difference between the 1.7M VAT threshold and the 1.5M simplified-regime threshold?
The MDL 1.7 million figure is the VAT registration threshold under Title III of the Codul Fiscal. The MDL 1.5 million figure is the turnover ceiling for the 4% simplified corporate income tax regime, which is a CIT election unrelated to VAT. The two operate on different tax bases and on different axes. An SRL can be a mandatory VAT registrant and simultaneously be ineligible for the 4% regime, or vice versa.