Romania saw the highest VAT collection deficit among EU member states in 2013, as it failed to get some 41% of the expected VAT revenues, according to a study of the European Commission. Netherlands, Finland and Sweden had the lowest deficits in collecting the VAT, of 4% of the expected revenues.
The VAT collection deficit is the difference between the expected VAT revenues and the VAT revenues which were actually collected. The EU member states lost EUR 168 billion of their estimated VAT revenues due to lack of collection or the failure to respect the VAT legislation. This represents about 15.2% of the total VAT revenues expected by the 26 member states.
The study highlights the need for further reforms in the VAT collection systems in the EU, said European Commissioner for Economic Affairs, Pierre Moscovici.
Romania reduced its VAT rate on food from 24% to 9% starting June 1, 2015, and will cut the general VAT rate from 24% to 20% on January 1, 2016. Romania’s tax authority ANAF collected 15% higher VAT revenues in the first eight months of 2015 compared to the same period of last year.