Romania remains EU's leader by VAT gap

Romania continues to record the largest value-added tax gap in the European Union, losing around one-third of both VAT and corporate tax revenues, according to an analysis by PwC Romania based on the VAT Gap in Europe report by the European Union. The country has held the top position in VAT non-collection for the past decade, the consultancy said.

The analysis showed that the largest VAT gaps across the EU were recorded in Romania, Slovakia, Poland, and Italy, with tax evasion identified as the main driver of lost revenues in these markets. By contrast, the smallest VAT gaps, below 3%, were registered in Denmark, the Netherlands, and Finland.