Republic of Estonia: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap
IMF Staff Country Reports, May 23, 2014
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- Republic of Estonia: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap
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Bibliographic details
- Published: May 23, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498370110.002
Summary findings
- The report applies the Revenue Administration Gap Analysis Program Value-added Tax (VAT) gap estimation methodology to Estonia for 2007–2012.
- Between 2009 and 2012, VAT receipts failed to keep pace with nominal GDP and final consumption growth, owing to a growing compliance gap.
- Within the overall VAT compliance gap:
- The assessment gap in Estonia increased from 2009–2011.
- The collections gap grew until 2009 and then decreased.
- The decrease of the collections gap followed the introduction of automated management and sanctions of debt in 2010.
VAT gap components and dynamics
- Coverage period: 2007–2012.
- Key component movements:
- Compliance gap: increased between 2009 and 2012, causing VAT receipts to lag nominal GDP and final consumption.
- Assessment gap: increased from 2009–2011.
- Collections gap: grew until 2009; declined after 2009, with the decline following the 2010 introduction of automated management and sanctions of debt.
Policy and administrative measures noted
- Introduction of automated management and sanctions of debt in 2010 is identified as associated with a reduction in the collections gap.