## Denmark: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap

_IMF Staff Country Reports, February 23, 2016_

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## Bibliographic details
- Published: February 23, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498369633.002

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### Summary overview
- Report presents estimates of the tax gap for Denmark for the period 2008–12.
- Primary objective: estimate the compliance gap—the difference between potential VAT that could have been collected given the current policy framework and actual accrued VAT collections.
- Report will also provide estimates for other tax gap measures and compare and contrast them with the compliance gap.

### Methodology
- RA-GAP (Revenue Administration Gap Analysis Program) methodology for estimating the VAT gap has two main components:
  1. Estimate the potential VAT collections for a given period.
  2. Determine the accrued VAT collections for that period.
- VAT gap = potential VAT collections − accrued VAT collections.
- Approach for estimating potential VAT base: top-down methodology using statistical data on value-added generated in each sector.
- Accrued VAT collections constructed from tax record data.
- The report focuses on the compliance gap but recognizes that alternative methods for determining potential VAT produce other tax gap measures useful for understanding factors affecting current collections.

### Key points and definitions
- VAT gap definition: the difference between estimated potential VAT collections and accrued VAT collections for a period.
- Compliance gap definition: difference between potential VAT under the current policy framework and actual accrued VAT collections.
- Alternative gap measures: derived by using different methods for determining potential VAT; these measures help interpret the influence of factors beyond compliance (methodological choices, policy scope, exemptions, measurement differences).

### Scope and metadata
- Pages: 57
- Volume: 2016
- Issue: 059
- Series: Country Report No. 2016/059
- DOI: https://doi.org/10.5089/9781498369633.002
- ISBN: 9781498369633
- ISSN: 1934-7685
- Subjects: Auditing, Public financial management (PFM), Revenue administration, Revenue Administration Gap Analysis Program (RA-GAP), Revenue performance assessment, Tax efficiency, Tax gap, Taxes, Value-added tax
- Keywords: Auditing, compliance gap, CR, efficiency gap, Europe, gap analysis, gap estimate, ISCR, Ra-gap VAT gap model, Tax efficiency, tax gap, Tax gap, value-added tax, Value-added tax

*International Monetary Fund. Fiscal Affairs Dept. "Denmark: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap", IMF Staff Country Reports 2016, 059 (2016).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/denmark-technical-assistance-report-revenue-administration-gap-analysis-program-the-value-43728_