The lowest VAT gap in EU in the analyzed interval was registered by Sweden (4%).
The 42% VAT gap means Romania collects only 58% of the total VAT that should be levied, PwC partner Daniel Anghel said Thursday at a conference.
The number of VAT reimbursement requests in Romania has increased constantly, similar to the number of tax evasion cases, Anghel said. Moreover, the country’s low revenue collection rate has blocked VAT reimbursement, he added.
Romania’s government has decided to change its VAT payment system at the request of the European Commission, to avoid penalties. Therefore, the system whereby firms must pay value added tax upon cashing in invoices will become optional and the government will eliminate regulations obliging firms to pay the VAT in maximum 90 days from invoice issuance.