VAT gap shrinking in Hungary

Telco

Beginning with the introduction of online cash tills reporting direct to the tax authorities in 2014, tax evasion has decreased by 7.2% in Hungary, which is currently the lowest in the region, index.hu is reporting.

The VAT gap – the difference between the estimated value added tax revenues that countries expect to receive and the amount actually collected – has shrunk from 20.9% in 2013 to 13.7% in 2015 in Hungary, online portal index.hu reports, based on a European Commission study released yesterday.

The average in Central and Eastern Europe is 25.5%. The EC noted the falling gap ratio, saying that VAT compliance continued to improve in 2015 in Hungary.

Expected total VAT revenue was HUF 3.834 trillion in 2015 in Hungary and the actual collected revenue came to HUF 3.307 tln  giving a gap of HUF 527 billion, or 14% of total expected revenue, the report said. It added that Hungary remained the EU member state with the highest standard VAT rate at 27%, and had the third-highest weighted average rate.

Commenting on the report, Minister for National Economy Mihály Varga said this morning that anti-fraud measures such as the electronic monitoring system for road haulage companies (EKAER) and online cashiers were contributing to the positive figures.

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