November 28, 2023

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Commission: 3.2 billion euros “value-added tax gap” in Greece

Commission: 3.2 billion euros “value-added tax gap” in Greece

The “gap” in Greece decreased by an additional 3.2 percentage points Value added tax(The VAT gap, i.e. the difference between theoretical and actual revenues from… value added tax), A limit that could help finance further reductions in tax rates.

According to a related report from commissionthe VAT deficit in 2021 reached 17.8% of VTTL (expected theoretical revenue under full compliance) versus 21% in the previous year, continuing the downward trend.

He added: “This is another essential step that demonstrates the progress that has been made in enhancing tax awareness, enhancing tax justice and addressing tax evasion.” Deputy Minister of National Economy and Finance Haris TheocharisAfter announcing the results. It is noted that compared to 2019, there is a decrease of 9.8 percentage points.

Of course, despite the reduction, the tax gap is still taking shape at an unimaginable level of 3.231 billion euros in 2021, compared to 3.426 billion euros in 2020. However, according to Commission estimates, the VAT gap has moved in 2022. To a much lower level compared to previous years, at 10.2%.

“Of course, there is still a long way to go, but our will is also strong. The Government of the New Republic and the Ministry of National Economy and Finance will remain firmly committed to the plan of necessary reforms that will confront chronic diseases by modernizing procedures, digitalizing the economy and developing control mechanisms. System and strengthening social cohesion,” said Mr. Theoharis. .

Picture in Europe

According to the Commission report, most EU member states made progress in implementing VAT in 2021 and lost around €61 billion in VAT, compared to €99 billion in 2020.

the Larger decreases in the VAT deficit were observed in Italy (-10.7 percentage points), Cyprus (-9.2 percentage points), Poland (-7.8 percentage points), Belgium (-6.7 percentage points), and Ireland (-6.0 percentage points)..

Regarding compliance, Romania (36.7%), Malta (25.7%), Greece (17.8%) and Lithuania (14.5%) are particularly low. In nominal terms, the largest gaps were estimated in Italy (€14.6 billion), France (€9.5 billion), and Romania (€9 billion). VAT compliance averaged 4.9 percent of the VTTL value, and is now closer to the average, indicating the convergence of Member States with higher gaps in VAT compliance.

Economic Commissioner Paolo Gentiloni said: “The recent significantly improved VAT deficit figures are good news for public finances in Europe. This is mainly due to well-targeted and consistently implemented national measures. We must now make a strong push at union level.” European Union also, or specifically implementing our game-changing proposals regarding VAT in the digital age to speed up and facilitate the access of tax authorities to information on transactions between companies. I call on Member States to quickly reach agreement on the new measures so that we can reduce VAT losses. Greater value added, especially that resulting from cross-border criminal fraud.