Possible increase of the VAT registration threshold to 3 million lei

In the Republic of Moldova, a draft law has been submitted to Parliament proposing to change the threshold for mandatory registration of value-added tax (VAT) payers. If adopted, companies will be required to register as VAT payers only when their annual turnover exceeds 3 million lei, whereas today the threshold is set at 1.2 million lei.

VAT Moldova Increase of the VAT threshold to 3 million VAT payer registration Moldova Changes for small businesses VAT Tax legislation Moldova Accounting and VAT

What this means for businesses

For small and medium-sized enterprises, VAT administration often becomes an additional challenge: it requires maintaining more complex accounting, submitting reports, and monitoring settlements with suppliers and clients. Raising the threshold to 3 million lei will allow a greater number of businesses to:

operate without mandatory registration as a VAT payer;
reduce administrative costs;
simplify paperwork and ease the workload for accounting.

For companies that are growing and gradually increasing their turnover, this change could serve as an incentive for further development. Businesses will be able to operate longer under a simpler tax regime, focusing resources on growth rather than additional obligations.

Possible consequences

For entrepreneurs – greater flexibility and opportunities to optimize expenses.
For accountants – simplification of reporting for some clients who will remain outside mandatory registration.
For the market – a potential increase in the number of small businesses, which will find it easier to start and operate.

At the same time, it should be taken into account that for companies working with clients who are VAT payers, voluntary registration may remain advantageous, since it allows deduction of tax on purchases. Therefore, the decision “to register or not” in the event of these changes being adopted will still require an individual assessment.

What’s next?

At this stage, it is only a draft law, and it must go through all stages of review and voting. Until its final approval, no changes will occur in the rules governing business activity.

We will continue to monitor the development of the situation. If the new threshold is approved, our specialists will assist in adapting accounting and tax processes in accordance with the updated legislation.