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Editorial13 August 2026 11:51

A Necessary Measure to Protect Small Businesses

New Prime Minister Vasile Tofan has presented next year’s tax policy, one provision of which concerns the introduction of VAT and a fee of 12 lei for each parcel delivered by international online shopping platforms. Although the prime minister clearly stated that the measure is intended to ensure fair competition and protect local retailers, various interpretations have emerged in the public sphere. Some are calculating how much additional revenue the state budget will receive from the fee and VAT, while others are estimating how much more consumers will pay for orders placed on international online platforms. Of course, all these aspects are important, but in this particular case, we should focus primarily on the arguments related to the need to ensure fair competition, because local retailers are currently clearly at a disadvantage.

At the risk of being accused of immodesty, I would like to recall that I was the first to raise this issue a year and a half ago. Therefore, I considered it necessary to remind people of some of the arguments and proposals from the business community that I put forward at the time. The unfair competition, which Prime Minister Tofan also referred to, stems from the fact that all Moldovan importers pay taxes and import duties, unlike online marketplaces, both American and Chinese. As a result, the tax burden leads to a 30–35% increase in the price of the same product. This directly affects small businesses, and in this context it should be noted that more than 90% of companies in the Republic of Moldova are small businesses, a significant proportion of which operate in retail and trade.

It should also be noted that year after year, both the volume of online purchases in Moldova and the number of parcels sent by international online shopping platforms continue to grow. And the faster these figures increase, the stronger the unfair competition and the pressure on local retailers become.

If 10–11 years ago around 40,000 parcels were delivered to Moldova annually, last year, according to some estimates, the number reached 12 million, while this year it could increase to 13–15 million. Likewise, if the volume of online purchases in 2025 was approximately 14 billion lei, some estimates suggest that this year we could exceed 17 billion lei.

In other words, we are dealing with a parallel market operating under a relatively lenient tax regime, which is undermining the market on which local retailers operate. And it is precisely these local businesses that create jobs, pay taxes and fees, pay rent, and thereby contribute to the development of other areas of economic activity.

A year and a half ago, I made public a series of proposals from the business community concerning orders placed through international online shopping platforms. Let me recall them:

  • Introducing VAT on all goods from third countries (countries outside the EU), regardless of their value;
  • Introducing customs duties on all goods from third countries worth more than €150 (initially, the value threshold should be eliminated or standards should be aligned with those of the EU);
  • Requiring major online marketplaces to register for VAT purposes and pay VAT on all goods purchased online;
  • Harmonizing import procedures for legal entities and individuals;
  • Requiring instructions to be translated into the state language, as Moldovan importers are required to do;
  • Establishing equivalent import requirements for medicines and food supplements.

By introducing a fee on each parcel and VAT on purchases made through international online shopping platforms, the authorities are taking an important step toward reducing the pressure currently faced by small local retailers.

However, the issue will remain relevant and will require particular attention in the future. Because what is at stake is enormous — ensuring fair competition and protecting local retailers.

Mircea Baciu, entrepreneur from the Republic of Moldova

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Editorial A Necessary Measure to Protect Small Businesses New Prime Minister Vasile Tofan has presented next year’s tax policy, one provision of which concerns ... more

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