Moldova State Tax Service targets beauty sector to curb shadow economy
The Moldova State Tax Service (SFS) is launching an extensive monitoring campaign targeting the beauty industry to combat tax evasion. The operation focuses on hair salons and cosmetology clinics, identifying a significant trend of revenue under-reporting across the sector.
Tax authorities are tracking both brick-and-mortar establishments and individual providers who advertise services via online classifieds. This strategic move aims to eliminate widespread "under-the-table" wage practices and the deliberate under-declaration of business income.
Risk assessments conducted by the SFS reveal that many providers artificially manipulate their turnover. This tactic allows businesses to remain below the mandatory VAT registration threshold, resulting in negligible contributions to the national budget despite high actual revenues.
The SFS is currently implementing an initial "soft enforcement" phase. This stage involves advisory compliance audits, individual meetings, and formal information letters sent to taxpayers to encourage voluntary alignment with legal standards.
These preventive measures are designed to ensure accurate reporting of all income and payroll obligations before more rigorous sanctions are applied. The oversight and control actions will remain active throughout the entire year of 2026.
According to official data, approximately 60,000 individuals are currently employed informally in Moldova. While the beauty sector is under scrutiny, the majority of undocumented labor remains concentrated in the agriculture and construction industries.
Translation by Iurie Tataru
