Tax collection is improving

The VAT gap in the EU shrank 1.9 points to 9.1% in 2020, the EU report shows. The gap between the ideal and actual tax collection was €93bn, of which Slovakia accounted for €1.1bn. The improvement was mainly due to state anti-pandemic assistance, which reduced the number of corporate bankruptcies. On the contrary, the higher popularity of online shopping did not improve VAT collection. The VAT gap in Slovakia plummeted from 35% in 2012 to 13.9% in 2020 (and an estimated 8.8% last year).

(IFP)