POLAND – ANALITICS
The European Commission presented its annual report «VAT GAP in the EU – Report 2022», which provides preliminary data on the VAT gap in EU countries. As the European Commission points out, the VAT gap has narrowed by 1.4 percentage points in 2020. compared to 2019, this improvement is in line with the Ministry of Finance’s estimates from April this year. Poland is among the European leaders in reducing the VAT gap between 2016 and 2020. This is mainly due to the implementation of modern tools to seal the tax system.
As the report shows, Poland’s VAT gap has reached 11.3% in 2020, which places us among the European leaders among the EU countries closing the VAT gap the fastest between 2016 and 2020. This is largely due to consistent action by the Ministry of Finance together with the National Office of Revenue. Between 2016 and 2020, according to EU data, the VAT gap in Poland decreased by more than 9 percentage points.
Ministry of Finance assessment:
«We have reformed tax administration and increased penalties for VAT offences. Fuel and transport packages have brought relief to bona fide entrepreneurs who lost competition to tax criminals. Innovative, systemic solutions have emerged that have begun to produce sustainable results. These include the split payment mechanism, the list of VAT payers and e-reporting. This also includes other electronic administration services, online cash registers, software-based cash registers or electronic receipts. Now the key to further effect in reducing the VAT gap is the use of modern technology».