“Grandma's home made” jam, accounted for as uncollected tax. “It is calculated at the VAT gap,” says the head of ANAF
Jars of homemade jam Photo: DragonImages / Alamy / Profimedia
The President of the National Agency for Fiscal Administration (ANAF), Adrian Nica, stated, on Wednesday evening, on Antena 3, that jam made in the household affects the level of VAT collection in Romania, stating that, according to the European Commission, products made for own consumption affect the general collection of VAT.
The head of ANAF, Adrian Nica, stated that the data used in the discussion about poor VAT collection are those reported for the year 2022.
“We are waiting for the publication in 2023. We have seen that neighboring countries, such as Bulgaria, have requested specialist assistance in order to have a correct formula for calculating these differences, when we talk about the VAT gap in particular. That is what we are trying to do, to present ourselves better and more correctly to the European Commission”, said the head of ANAF, Adrian Nica, quoted by News.ro.
He stated that “it is well-known that the discussion that appeared in the public space regarding the production that Romania registers, being the specifics of this country, when we talk about self-consumption”.
“And to give some clear examples: the way we treat the jam that grandma makes at home,” said the head of ANAF. “Does this count for the VAT gap in Romania?”, asked the moderator. “Unfortunately, today, yes. Yes, it is calculated today at the VAT GAP”, answered the head of ANAF, Adrian Nica.
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In 2022, Romania had the largest VAT gap in the European Union. The VAT gap represents the difference between how much VAT the state should collect (according to fiscal legislation) and how much VAT it actually collects.
According to specialists, it is an indicator used to measure tax fraud, tax evasion, insolvencies and administrative errors.
