Online systems cut VAT gap

The increase in electronic transactions has reduced the value-added tax gap, with the state collecting significant revenues on an annual basis.

The skyrocketing use of cards during the pandemic, which has now become customary for a very large segment of the population, the introduction of electronic books and the connection of tills with POS have reduced VAT losses, so that the evasion rate has declined by 50% from 2017. The government is reaping the fruit of the changes it has introduced and expects the gap between the actual economic activity's VAT and the state takings to be reduced further by 2026.

Therefore, from the 6 billion euros of VAT loss incurred in 2017, the state missed out on just €3.2 billion in 2021, while the latest study by the European Commission, slated for release in end-September, will, according to sources, show that the VAT gap for 2022...