In this article the authors convey that the signing and ratifying of the Association Agreement between the European Union and the Republic of Moldova commits our country to economic, judicial and financial reforms to converge its policies and legislation to those of the European Union. One of the important areas of the mentioned reforms refers to indirect taxation; specifically VAT. Since VAT proves to be an efficient tool for revenue collection; its performance, therefore, has a direct impact on fiscal mobilization, macroeconomic stability, and development. Theory and practice indicate that in order for VAT to be efficient, it must be consumption-typed, broad-based, and applied through to the retail stage. Despite certain inherent problems in administration, the VAT is empirically found to be a buoyant tax. Multiple rate structure is inherently complex, but yet, many argue for it on both efficiency and equity grounds. In practice, however, a multiple rate structure poses a great challenge to the tax compliance and administration.