site.btaRomania Loses at Least EUR 9 Bln Annually from VAT Fraud, Says EU Chief Prosecutor

Romania loses at least EUR 9 billion each year from value-added tax (VAT), mainly due to fraud, European Chief Prosecutor Laura Kovesi said in an interview for Digi24 on Friday. She cited the latest European Commission (EC) report on VAT collection deficits, released in December 2024, which states that Romania lost EUR 8.4 billion in 2022 alone due to uncollected VAT.

According to the report, the shortfall stems primarily from VAT fraud, tax evasion, miscalculations, and other factors. Kovesi noted that the Romanian authorities have not prioritized tackling VAT-related fraud.

The issue has resurfaced in public debate amid ongoing negotiations over reducing the budget deficit, the formation of a new government, and recent public statements by newly elected President Nicusor Dan, who said that his new government does not intend to implement a standard VAT rate increase. 

To return to its budget deficit target of 7.5% of GDP, agreed with the EC, Romania needs to secure RON 30 billion (approximately EUR 6 billion).

Romanian National Bank Director Eugen Radulescu, commented on Digi24: “We fail to collect 30% of VAT, yet we are discussing other ways to raise revenue while bleeding cash. Bulgaria has around 7% uncollected VAT and is entering the eurozone. Meanwhile, we’re standing by and just watching.”