Hungary Climbs to 4th in EU VAT Compliance Ranking, Reduces Tax Gap Significantly
Hungary Continues to Improve VAT Compliance Gap, Ranks 4th in Europe
Hungary has made significant progress in improving its VAT compliance gap, moving up to 4th place in the European Commission’s ranking, according to Finance Minister Mihály Varga. In a recent post on Facebook, Varga announced that Hungary’s VAT compliance gap has fallen to 2.3 percent from 22.3 percent in 2010, making it one of the biggest improvements in Europe.
Comparatively, the EU average for VAT compliance gap is 8.3 percent, highlighting Hungary’s achievement in reducing tax avoidance and increasing tax revenue. Varga credited the government’s measures to whiten the economy for this success, noting that tax avoidance has decreased tenfold over the past 14 years.
These results come as Hungary continues to implement reforms aimed at increasing transparency and compliance in tax matters. With taxes also being reduced, the country is creating a more favorable environment for businesses and individuals alike.
As Hungary solidifies its position as a leader in tax compliance within Europe, the government remains committed to further improving its economic performance and fostering sustainable growth.
