THE EFFICIENCY OF VAT COLLECTION IN ROMANIA

Abstract

The issue of the efficiency of the fiscal systems has been analyzed in the specialized literature, the specialists formulating various points of view regarding the importance of ensuring the efficient functioning of the fiscal systems and the characteristics that should be found in an efficient fiscal system. Fiscal policy in Romania is defining for the functionality of the economic system as a whole. The tax system in Romania is characterized by poor collection, inefficient administration, excessive bureaucracy and high tax evasion. VAT is one of the basic budget revenues in the formation of a state's GDP. However amid tax evasion and collection system problems, European countries are losing billions of euros in VAT revenue every year. This is also the case of Romania, which is among the countries with the largest deficit in VAT collection in the EU. In this sense, in this article we intend to make an analysis of the evolution of VAT collection in Romania in the last 10 years, to identify the causes and of some measures to increase the collection level.