EUROPEAN MECHANISMS OF VAT TAXATION AND THEIR IMPLEMENTATION IN TAX AND ACCOUNTING PRACTICE OF THE REPUBLIC OF MOLDOVA

Throughout its existence, the value added tax (VAT) influenced negatively the economic activity of entities and financial situation of population, representing at the same time a considerable source of income to the state budget. In the European Union (EU) legislation there are legislative directives which encode the provisions of implementing the common system of VAT, that apply to the production and distribution of goods and services for consumption within the EU. These Directives issued at Community level do not apply directly, these being transposed into national legislation of each Member State. One of the prerogatives of alignment the Republic of Moldova (RM) to EU is the improvement of its legislation in accordance with the provisions and conditions imposed by the EU. Thus, the first step for RM in improving tax system according to legislative requirements of the European Union is directed towards legal harmonization of VAT to the conditions of the European standards. In connection with above-mentioned, this article reflects some mechanisms of VAT taxation in European countries and the ways of their implementing in tax and accounting practice of RM.