<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The article aims to estimate the VAT Gap amount development from 2010 to 2016 in the Czech Republic. The methodology of the VAT Gap identification was based on the indirect top-down method for each year of the reporting period, using the authors’ calculation of the weighted average VAT rate in the Czech Republic. The results of the years under review show a VAT gap of more than CZK 100,000 million per year. The breakdown of the VAT Gap into individual parts shows that it is mainly due to the intentional misrepresentation of data by business entities. The VAT Gap associated with this factor ranged from CZK 40,004 to CZK 52,765 million in the monitored years. Only 3.53%–7.03% of the VAT Gap of unlawful tax evasion is subject to prosecution for the tax evasion offense.</p>
</abstract>

The article aims to estimate the VAT Gap amount development from 2010 to 2016 in the Czech Republic. The methodology of the VAT Gap identification was based on the indirect top-down method for each year of the reporting period, using the authors’ calculation of the weighted average VAT rate in the Czech Republic. The results of the years under review show a VAT gap of more than CZK 100,000 million per year. The breakdown of the VAT Gap into individual parts shows that it is mainly due to the intentional misrepresentation of data by business entities. The VAT Gap associated with this factor ranged from CZK 40,004 to CZK 52,765 million in the monitored years. Only 3.53%–7.03% of the VAT Gap of unlawful tax evasion is subject to prosecution for the tax evasion offense.

Czech VAT Gap Progress

DANUBE

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Czech VAT Gap Progress"}

The article aims to estimate the VAT Gap amount development from 2010 to 2016 in the Czech Republic. The methodology of the VAT Gap identification was based on...

Czech VAT Gap Progress

Published Online: Jan 06, 2024

Page range: 302 - 316

DOI: https://doi.org/10.2478/danb-2023-0018

Keywords
Value Added Tax, Tax Fraud, VAT Gap, Tax Evasion, Czech Republic

© 2023 Gabriela Kukalová et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Czech VAT Gap Progress

Published Online: Jan 06, 2024

Page range: 302 - 316

DOI: https://doi.org/10.2478/danb-2023-0018

KeywordsValue Added Tax, Tax Fraud, VAT Gap, Tax Evasion, Czech Republic

© 2023 Gabriela Kukalová et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Value Added Tax, Tax Fraud, VAT Gap, Tax Evasion, Czech Republic