Speaker
Description
The Value Added Tax (VAT) was first introduced in France in 1954 and later harmonized at the European level in 1967, becoming a cornerstone of modern tax systems. Although VAT is considered a neutral tax for companies, its collection and deduction mechanism makes it vulnerable to fraud, especially in the context of international transactions. Romania, despite applying relatively low rates according to European standards, faces a significant VAT collection deficit. This study examines the impact of VAT rate changes on tax evasion and taxpayer compliance, using Romania as a case study for the period 2003-2023. Through a mixed-method approach (quantitative and qualitative methodologies), including econometric analyses and statistical surveys, the research aims to determine the correlation between VAT rate variations, fraud trends, taxpayer perception, and effects on different economic sectors.
The study also investigates how frequent VAT rate adjustments influence taxpayer behavior, particularly in terms of compliance and tax planning strategies. By analyzing historical data and conducting surveys among businesses, the research explores whether periods of VAT rate increases lead to higher tax evasion or shifts in business practices. Additionally, the study assesses which industries are most affected by VAT changes and whether certain economic sectors are more susceptible to fraud. The findings will contribute to a better understanding of how VAT policy adjustments impact fiscal revenues and compliance levels, offering insights into potential strategies for improving tax collection efficiency while minimizing fraud risks. The results are expected to highlight the need for a more stable and predictable VAT framework, as well as the importance of complementary fiscal control measures to mitigate revenue losses.
