New tax reporting rules for energy traders to simplify reverse charge mechanisms
Moldova’s State Tax Service (SFS) will introduce a streamlined VAT declaration format for electricity and natural gas transactions effective January 2026.
The reform aims to eliminate reporting ambiguities and standardize the application of the reverse charge mechanism for all energy market participants.
Focus on cross-border and domestic energy trade
The updated framework targets natural gas, electricity, and thermal energy purchases from both local and non-resident suppliers. This includes specialized services such as grid access, transport, distribution, and power generation capacity reservations.
For foreign suppliers, the rules specifically cover gas delivered through transmission networks and cooling energy. Domestic transactions will see a unified reporting standard, ensuring that all taxpayers follow identical procedures for energy-related products.
Impact on energy traders and merchants
The simplified rules apply directly to economic agents holding merchant status who trade electricity or natural gas. These entities must now report purchase values and associated VAT under a clarified set of guidelines, regardless of whether the energy is imported or sourced locally.
By centralizing these reporting requirements, the SFS intends to reduce the administrative burden on the private sector. The transition also aligns Moldova’s fiscal procedures more closely with international energy trading standards.
Translation by Iurie Tataru
