Over 6 bln euro losses from uncollected VAT in Romania, solution is modern collection IT technologies (PwC)

The collection deficit of the value-added tax (VAT) grew in 2016 against 2015 in Romania, and the noncompliance in the VAT matter went up, although the standard rate for this tax curtailed from 24pct to 20pct, a release of the PwC sent Monday to AGERPRES informs. 

'In 2016, Romania ranked again last as regards the VAT collection degree among all the EU member states, the VAT collection deficit parking at 35.88pct. Worrisome is that the cashing deficit of the VAT went up in 2016 against the level recorded in 2015 in Romania, while most of the EU member countries have seen drops of this indicator. According to the study released by the European Commission, although the VAT standard rate dipped in Romania in 2016 from 24pct to 20pct, the noncompliance in the matter of the VAT grew, thus contributing negatively to the cashing deficit of the VAT,' the PwC specialists say. 

According to the most recent research on the VAT collection, launched by the European Commission, the VAT non-cashing has generated some 6.13 billion euro losses in 2016 to Romania's budget. 

'At the level of the entire European Union, 6 countries have recorded in 2016 a VAT collection deficit greater than in 2015. Romania is the only one in the Central and Eastern European region, except for the Baltic states, in this situation, a reason why we find it very important that our country follows the good practice of other states as regards the computerization of the interaction with the tax-payers. The ANAF [National Agency of Tax Administration, ed. n.]'s option to implement modern methods to collect the VAT with the support of the IT technologies would create the premises of normalcy and of an ascending evolution of the collection degree not only in the short term, but also in the medium and long term, the way both ANAF and the honest tax-payers want,' Daniel Anghel, partner, leader of the Taxes and Legal Consultancy Department with PwC Romania, says. 

The VAT collection deficit has in view the losses registered due to evasion, fraud, insolvencies, bankruptcy, administrative errors, obtaining of undue tax advantages.