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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 09:27

Lithuania lost almost EUR 1b in VAT revenues in 2016 – EC

BC, Vilnius, 25.09.2018.Print version
Lithuania managed to improve VAT collection in 2014-2016 but the so-called "VAT Gap" (the difference between the expected VAT revenue and the amount actually collected) stood at around 25% and was one of the highest in the EU, reported LETA/BNS.

EC estimates show Lithuania lost 983 mln euros in VAT revenues in 2016.


The latest EC figures show the VAT GAP stood at 24.52% in Lithuania in 2016, down 1.05 percentage points from 2015 and down 3.23 percentage points from 2014 when it stood at 25.57 and 27.75 respectively.


Only four EU member states scored worse in terms of VAT collection than Lithuania in 2016. The VAT Gap stood at 35.88% in Romania, followed by Greece (29.22%), Italy (25.9%) and Slovakia (25.68%).


The VAT GAP was 11.27% in Latvia, just 6.78% in Estonia, compared to the EU average of 12.32%. And Luxembourg led EU member states in terms of VAT collection, with the VAT GAP being only 0.85%.


The EC estimates that the real VAT tariff (taking in account all tax breaks) stood at 17.1% in Lithuania in 2016, and VAT revenues totaled 3.026 bln euros, and expected revenue taking into account the size of the economy was 4.009 bln euros.






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