IMF supports tax administration modernization in Moldova

The International Monetary Fund (IMF) is conducting a technical mission in Moldova from October 1 to 16 to support the modernization and reform of the country's tax administration. Experts are working with the State Tax Service (SFS) to identify measures for automation and improved efficiency, specifically focusing on risk-based tax controls and the VAT refund process.

During meetings with Finance Minister Victoria Belous and SFS Director Elena Ţîbîrnă, officials emphasized the need for a taxpayer-oriented administration that balances budget revenue collection with the encouragement of voluntary tax compliance.

IMF analysis has noted that current mandatory verification of all VAT refund requests consumes significant administrative capacity with relatively low results. Data indicates that only 10.4% of controls initiated via VAT refund requests led to tax adjustments, compared to 92.4% for audits included in the annual plan. The mission aims to address these inefficiencies through better data utilization and risk assessment.