Romania failed to collect 1/3 of VAT in 2019
Photo by Albert Zoltan / Shutterstock.com
In 2019, Romania recorded the highest national VAT (value-added tax) compliance gap, with 34.9% of VAT revenues going missing, followed by Greece (25.8%) and Malta (23.5%).
In absolute terms, Romania's Government failed to collect EUR 7.4 billion (over 3% of GDP) VAT owed by companies, according to a report of the European Commission, Profit.ro reported, according to Romania-insider.
Furthermore, the VAT gap in Romania increased from RON 29.1 billion (32.7% of GDP) in 2018 to RON 35.1 billion in 2019.
The smallest gaps were observed in Croatia (1%), Sweden (1.4%), and Cyprus (2.7%).
In absolute terms, the highest VAT compliance gaps were recorded in Italy (EUR 30.1 billion) and Germany (EUR 23.4 billion).
The most significant increases in the VAT gap were observed in Malta (+5.4%), Slovenia (+3%), and Romania (+2.3%).
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