Until now, the Ministry of Finance has not calculated it, but intends to do so. The VAT gap is the difference between what the budget obtains from VAT and the hypothetical revenue of the budget that can be achieved if all consumption is effectively taxed.
"This year, we will have our estimates, which is our own analysis in this area" Agnieszka Królikowska, Deputy Minister of Finance
"The Ministry of Finance is working to estimate the VAT gap. We develop a new methodology, as accurate as possible, to have our own calculations related to its definition. At the moment we are at the stage of developing the model and method of calculating the gap". Specialists from tax, tax and macro-economic departments are involved in the work," said Agnieszka Królikowska, Deputy Minister of Finance.
"There are also discussions on extending work to a gap in other taxes. We will certainly focus on VAT. This year we will have our estimates, which is our own analyst in this area" - added the Deputy Minister. She noted that market estimates show that the VAT gap in Poland is above twenty one billion PLN per year to over 50,000,000,000 PLN. "My gut tells me it might be okay. 30,000,000,000 PLN a year" - she added.
According to the VAT gap published last November, the value of the VAT gap would be approx. 42,000,000,000 PLN, or 2.5%
However, it is not possible to eliminate the VAT gap completely.
The VAT gap can be reduced by approx. 31,500,000,000 PLN, the amount corresponding to the approximately annual budget of the Ministry of Defence.
This decline is mainly affected by the grey economy and tax fraud, as well as errors made by taxpayers, the application of unfair tax optimization, the bankruptcy of companies and the inefficiency of tax collection.
The Ministry of Finance this year will be ready to count the gap independently. At this point, it prepares a methodology for determining what part of the tax the budget loses every year.