The latest European Commission report on the VAT Gap, covering the 2019–2024 period, shows that Romania recorded a VAT compliance gap of 30% in 2023, unchanged from 2019, according to Forbes. The indicator measures the difference between the VAT theoretically due, calculated based on consumption data, and the amount actually collected by the state.
Challenging economic context and early signs of improvement
According to the report, 2023 was marked by high inflation and sharp increases in electricity prices, which led to government interventions such as price caps. These developments affected consumption patterns and, indirectly, VAT collection.
Read also: Romania records the EU’s fourth-highest poverty rate, but Eurostat data shows encouraging progress
For 2024, the European Commission estimates a slight improvement, with Romania’s VAT gap decreasing by 0.5 percentage points to 29.5%.
While Romania still ranks among the EU countries with the highest VAT gaps, the report highlights its ability to maintain stability and avoid significant deterioration. In contrast, countries such as Poland, Hungary, and Estonia recorded more pronounced increases in their VAT gaps during the same period, largely due to inflationary pressures.
Adrian Nica, President of the National Agency for Fiscal Administration (ANAF), stated:
“Our strategy is to move the fight against tax evasion into the digital space. Maintaining VAT collection stability in a difficult European context shows that the measures we have implemented are starting to deliver results.”
ANAF figures and the impact of digital tools
ANAF data show that in the first ten months of 2025, VAT revenues totaled RON 94.31 billion, an increase of RON 9.20 billion compared to the same period in 2024. Between July and October 2025 alone, net VAT revenues rose by 18.1% year-on-year.
These results are closely linked to the accelerated rollout of digital tools such as e-Invoicing, RO e-Transport, and SAF-T reporting, which improve transaction traceability and reduce opportunities for fraud. The European Commission report notes that Romania is actively contributing to the EU-wide effort to reduce the VAT gap. Additionally, the successful renegotiation of the VAT gap milestone under the National Recovery and Resilience Plan (PNRR) in November 2025 helped Romania avoid the loss of up to €1 billion in grants in 2026.
Photo: freepik.com
