VAT returns registered 33% growth in 2006
In 2006, the total amount of revenues to the budget of the Value Added Tax (VAT) has been of about MDL 2.074 bln, by about MDL 524 mln or 33.2% more, compared to the level of 2005. This data is provided in the 2006 Report of the State Principal Fiscal Inspectorate (IFPS). According to IFPS, the increase in revenues is caused by the fact that, similar to last year, the administration of VAT has been operated on the basis of informational products, worked out for this purpose, which created conditions for discovering tax evaders. Another method, which proved its efficiency, is that of instituting periodic tax posts for taxpayers who hold restaurants, bars, warehouses and gas stations and represent an increased risk of tax evading. In the period of the tax posts’ activity, an increase by 2-3 fold of the turnover and, consequently, of the businessmen’s incomes has been registered. The regulation of the VAT is provided in the III Title of the Fiscal Code and the Law on applying the III Title of the Fiscal Code, which entered into force on July 1, 1998. According to these regulations, the subjects taxable with TVA are legal and natural entities which are or should be registered, in compliance with the provisions of the article no. 112 of the Fiscal Code; natural entities who import goods, except for persons who import goods of personal use or consumption, the value of which does not exceed the limit established by legislation; natural and legal persons who import services, which are considered to be taxable imports.