VAT Gap in the EU

Project

7 Nov 2022 - 6 Nov 2023

Adam Śmietanka

Magdalena Wiśniewska

Date:

7 Nov 2022 - 6 Nov 2023
Project duration:

07.11.2022 - 06.11.2023
Leader:

CASE – Center for Social and Economic Research

Adam Śmietanka

Economist
Adam Śmietanka is an Economist at CASE. His areas of expertise include data analysis, data visualization, web scraping, and inflation measurement. At CASE, Mr. Śmietanka is responsible for conducting data analysis, economic research, and developing and maintaining CASE’s online monthly consumer price index. His professional experience includes an internship with PwC’s Advisory Team and a … <a href="https://case-research.eu/project/vat-gap-in-the-eu-4/">Continued</a>

Projects from this author:
- The challenges of VAT beyond VAT in the Digital Age
  This study should consider possible improvements to the EU VAT system and assess their feasibility and likely consequences, based on the analysis of its current weaknesses, gaps, inefficiencies. As requested by the ToR, this requires a forward-looking analysis and prospective reflection, combined with and based on the retrospective assessment of the current situation. The study requires, on the one side, a thorough re-assessment of well-known problems of the EU VAT systems, which have been discussed for years by policymakers, scholars and in courts and tribunals, the solutions to which have already been long proposed in the academic as well as policy arena. On the other side, it requires a fresh view to identify new solutions to old problems, new problems and their possible solutions, as well as potential unknown problems, i.e. those that may appear in the future given the current economic, political and legal evolution and the megatrends of the EU and global society. Operationally, the activities needed to achieve the objectives of the study are straightforward. For each of the areas or angle of analysis, the study team will have to: Identify existing weaknesses and challenges of the EU VAT system, including those that may appear in the future given the likely evolution of the current situation. Design solutions to the problems identified. Assess the feasibility and consequences of the solutions identified.
- VAT Gap in the EU
  The core objective of this study is to inform in an accurate, timely, understandable, and attractive manner the national administrations, Commission, academic community, and a broader audience on the value, development over time, and difference across Member States of tax gaps and related parameters. More specifically, the study will cover the VAT compliance gap, … Continued
- VAT compliance gap due to Missing trader intra-community (MTIC) fraud
  Revenues generated by Value-Added Tax (VAT) play an important role in the budgets of European Union (EU) Member States (MS) and the EU; as VAT resource accounts for around 10% of EU own resource revenue and around 26% of MS’s tax revenue. Tax fraud, evasion and avoidance reduce these revenues, and undermine the tax system, affecting … Continued
Author’s projects
Magdalena Wiśniewska

Head of Business Development Team
Magdalena Wiśniewska is responsible for managing research projects at CASE. She holds MA in International Relations from the Nicolaus Copernicus University in Toruń and MA in  Finance & Accounting from Warsaw School of Economics. During her career she gathered an extensive experience both in the public and private sector. She worked among others for Office … <a href="https://case-research.eu/project/vat-gap-in-the-eu-4/">Continued</a>

Projects from this author:
Author’s projects

Description:

The core objective of this study is to inform in an accurate, timely, understandable, and attractive manner the national administrations, Commission, academic community, and a broader audience on the value, development over time, and difference across Member States of tax gaps and related parameters. More specifically, the study will cover the VAT compliance gap, VAT policy gap, its components, and the C-efficiency. The expected secondary objectives are, among others, to enhance the efforts of national administrations in their own calculation by helping to validate their estimates and by providing quantitative evidence to help assess the effectiveness of the measures introduced at the EU level and by Member States’ administrations.

The set of tasks, components of the analysis, and elements of the presentation envisaged for the 2023 Study, as set out in the ToR, consist of:

Review of the economic and policy context in 2021 and outlook for 2022, which covers as a minimum:

Economic conditions, for instance as regards development of GDP, unemployment, consumption, capital formation, and other indicators the tenderer considers influential. In particular, this review shall include the impacts of the coronavirus pandemic;
VAT regime changes;
sources of changes in VAT revenue components;
link and relevance of the analysis for the development and analysis of the VAT compliance and policy gaps.

Calculation of VAT compliance gap estimates by EU Member State as well as at the EU level.
Calculation of VAT policy gap estimates and collection efficiency by EU Member State as well as at the EU level.
Individual country reports.
Review and reassess the methodological approach developed in the previous edition of the VAT gap study to cope with the unavailability of the weighted average rate calculations. At a minimum, the analysis needs to critically assess the underlying assumptions (for instance, but not limited to, consumption patterns), the extent to which these assumptions can be supported by evidence, and whether the assumptions can be considered valid over time, especially when they refer to patterns or distributions that remain stable or unaltered over time.
Web front end for visualisation and dissemination.

Experts: Grzegorz Poniatowski, Adam Śmietanka, Mikhail Bonch-Osmolovskiy

Sponsor: Directorate-General Taxation and Customs Union (DG TAXUD)

Project leader: CASE – Center for Social and Economic Research

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VAT Gap in the EU

Date:

Project duration:

Leader:

Adam Śmietanka

Projects from this author:

Magdalena Wiśniewska

Projects from this author:

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