VAT TAXATION ON AGRICULTURAL PRODUCTS – A CONTROVERSIAL ELEMENT OF FISCAL MANAGEMENT IN THE REPUBLIC OF MOLDOVA
Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 13 ISSUE 2
Written by Alexandru FRECAUTEANU, Angela CHISLARU
Currently, through VAT, to the national public budget of the Republic of Moldova is collected a part of the taxable supplies made o the teritory of the country, as well as goods or services imported. In 2013 year the share of VAT in the total taxes collected will constitute 79% including also the VAT taken from the domestic supplies - 20%. Simultaneously, it was proceeded to cancel the reduced rate of 8% for agricultural products in their natural state and to implement the standard rate of 20% to recovering the difference of 12% over a period of 30 days. The Executive explains this change by the need to harmonize local regulations with Directive 2006/112 EU from 26 November 2006 of the unification of applied rates, of the creation of equal tax conditions for all sectors of the national economy. In reality is looking for other purposes - to establish tight controls on all parties of local business, to increase budget revenues at all costs, to conceal gaps in fiscal administration and management of agricultural sector, etc. Examining the experience of other countries has shown that the problem can be solved through different ways: by reserving the 12% difference in special bank accounts of households and their strict direction for product development by imposing agricultural product wholesale buyers to transfer the VAT directly to the budget (but not households, as they do now), etc. In our opinion, the first variant is optimal and will lead both to simplifying the fiscal management, as well as the revitalization of the agricultural sector.