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Bulgaria has emerged as among European Union states with the best rates in recent years of collecting value-added tax (VAT) – though it has also emerged that across the EU, huge sums in VAT are being lost because of non-compliance or failure to collect, Sofia Globe wrote.
A report issued after an investigation funded by the European Commission found that an estimated 193 billion euro in VAT revenue, about 1.5 per cent of GDP, was lost in the “VAT Gap” in 2011 across all EU countries checked in the report.
The “VAT Gap” is uncollected VAT, the difference between expected VAT revenue and VAT actually collected by national authorities. The countries with the lowest uncollected VAT are Estonia and Slovenia, each with 300 million euro, followed by Bulgaria and Luxembourg (600 million euro each).
The study was funded by the Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion, the EC said. The study sets out detailed data on the gap between the amount of VAT due and the amount actually collected in 26 EU countries between the years 2000 and 2011. American Chamber of Commerce, Bulgaria
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