PwC: Romania records highest VAT collection deficit in EU

Romania remained the EU member state with the highest VAT collection deficit in EU in 2015, namely 37.2%, according to the European Commission. This means that the state’s VAT revenues are 37% lower than the theoretical level, considering Romania’s other economic indicators. The uncollected amount is some EUR 7.7 billion, more than Romania’s budget for education, investments in infrastructure and health in 2017, PwC Romania announced on Friday. Romania could increase the VAT collection by taking over good practices from other countries and consulting with the business environment. Other measures include using a certified billing software or keeping a centralized VAT monitoring database, Daniel Anghel, head of indirect taxes at PwC CEE, said on Friday. The EU member states recorded a total VAT gap of EUR 152 billion in 2015, according to the same study. The overall VAT gap in the EU was 12.8% in 2015, down from 14.1% in 2014. The lowest gaps were in Sweden (1.42%), Spain (3.52%), and Croatia (3.92%). EC report: Romania registered the largest VAT gap in 2015 editor@romania-insider.com