Bulgaria Govt Misses Out on EUR 604 M Annually in VAT Revenues - Study
Bulgaria may be losing 1.6% of GDP in value-added tax revenues due to tax evasion and a lack of enforcement, according to a study, commissioned by the European Commission.
The report provides estimates of the VAT Gaps for EU member states for the period 2000-2011 and sets annual losses at EUR 193 B.
The VAT gap is "the difference between the theoretical VAT liability and the collections of VAT" and the report is using it as an indicator on how much money EU countries lose in in VAT revenues due to fraud and a lack of enforcement.
Bulgaria's average VAT Gap for the period 2000-2011 is 15% , that equals to EUR 604 M.
For comparison the EU average VAT Gap is of 18% and the union as a whole looses 193 BLN EURO in VAT revenue.
The study named "Study to quantify and analyse the value added tax (VAT) gap in the EU 27 Member States" aims to help better understand the recent trends in the field of VAT fraud among EU member states.
EU Tax Commissioner Algirdas Semeta said Thursday the amount of revenues slipping through the governments' nets is "unacceptable, particularly given the impact such sums could have in bolstering public finances."
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