VAT Fraud Robs Bulgaria's State Budget of BGN 2B Annually

Business » FINANCE | March 20, 2014, Thursday // 15:55| Views: | Comments: 0
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Bulgaria: VAT Fraud Robs Bulgaria's State Budget of BGN 2B Annually

Bulgaria's state budget loses BGN 2B annually due to VAT fraud, according to data of the Economic Research Institute with the Bulgarian Academy of Sciences.

Taking into account the uncollected excise duty, losses swell up to BGN 4B per year, the Director of the Institute Prof. Mitko Dimitrov said, cited by Cross news agency.

"There is a sudden increase in fraud, particularly with the onset of the crisis. There is a clear upward trend of uncollected VAT as a result of tax evasion," Dimitrov explained.

According to him, the share of gray economy has remained very high - between 35% - 40% over a long period of time.

60 percent of businesses stated that VAT collection is avoided by corruption and fictitious cash flows of fictitious companies.

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Tags: gray economy, uncollected excise duty, state budget, tax fraud, VAT, tax evasion
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