VAT revenue collection has failed to show significant improvement across EU Member States according to the latest figures released by the European Commission on September 4.
In 2013, Member States’ estimated VAT Gaps ranged from the low of 4 percent in Finland, the Netherlands and Sweden, to the high of 41 percent in Romania, reads the latest VAT Gap 2013 report.
Overall, 15 Member States decreased their VAT Gap, with the largest improvements noted in Latvia, Malta and Slovakia. 11 Member States saw an increase in the VAT Gap, generally of small magnitudes, with the largest deteriorations in Estonia and Italy.
Romania’s VAT gap declined by two percentage points in 2013, capping a five-year trend that has lowered the non-compliance from the high of 2009 (50 percent).
The 2013 result is in line with economic fundamentals, the EC report says. Romania registered one of the strongest GDP growth rates in the EU (+3.5 percent), and VAT revenues rose by a strong 6.3 percent (in Euro terms).
The VTTL rose more slowly than nominal final consumption, hence the reduction in the VAT Gap from 43 to 41 percent. However, this remains the highest value of the Gap among the 26 EU Member States.
More precisely, Romania lost EUR 8.3 billion from uncollected VAT.