- Romania remains last in the EU for VAT collection, with a 30% VAT gap in 2023, unchanged since 2019.
- The EU average VAT gap is 9.5%, with most countries below 10%; only Malta comes close to Romania’s high gap.
- Despite digitalization and fiscal reforms, Romania’s VAT collection has not improved, and data quality issues persist.
- The main problem is weak collection and enforcement, not VAT policy design.
- Economic factors in 2023, such as moderate GDP growth, lower inflation, and increased digital payments, have not reduced Romania’s VAT gap.
Source: romaniajournal.ro
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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