Commission Implementing Regulation (EU) 2023/2493 of 15 November 2023 on the treatment for national accounts purposes of the non-collected VAT due to VAT fraud and due to insolvency (the discrepancy between theoretical VAT receipts and actual VAT receipts) for the application of Regulation (EU) 2019/516 of the European Parliament and of the Council on the harmonisation of gross national income at market prices

1 The Member States shall calculate the value of non-collected VAT by applying the methods set out in the Annex to this Implementing Regulation. The value of non-collected VAT includes VAT non-collected due to evasion ‘without complicity’ and, if relevant, VAT non-collected due to insolvency.

2 For the purposes of the calculation in the first paragraph, the Member States shall determine theoretical VAT receipts and actual VAT receipts and calculate the discrepancy between these two amounts, by applying the following general formula: Non-collected VAT = Theoretical VAT receipts less actual VAT receipts less missing revenue (due to evasion ‘with complicity’)

3 Actual VAT receipts are recorded as taxes D.211 as laid down in ESA 2010 paragraphs 4.26 – 4.28. Depending on the source from which the actual VAT receipts are derived (amounts evidenced by assessments and declarations or cash receipts), the following three options for estimating non-collected VAT within the above general formula are possible: (a) Option 1a (based on ESA 2010 paragraph 4.27a – D.211 derived from assessments and declarations adjusted by a coefficient reflecting assessed and declared amounts never collected): Non-collected VAT (due to evasion without complicity and due to insolvency) = Theoretical VAT receipts less actual VAT receipts evidenced by assessments and declarations adjusted by coefficient less missing revenue (due to evasion ‘with complicity’); (b) Option 1b (based on ESA 2010 paragraph 4.27a – D.211 derived from assessments and declarations; capital transfer D.995 to the relevant sectors recorded, reflecting assessed and declared amounts never collected): Non-collected VAT (due to evasion without complicity) = Theoretical VAT receipts less actual VAT receipts evidenced by assessments and declarations less missing revenue (due to evasion ‘with complicity’); (c) Option 2 (based on ESA 2010 paragraph 4.27b – D.211 derived from time-adjusted cash receipts): Non-collected VAT (due to evasion without complicity and due to insolvency) = Theoretical VAT receipts less actual VAT receipts based on time-adjusted cash less missing revenue (due to evasion ‘with complicity’).

4 The Member States shall, if necessary, adjust the estimates of value added and operating surplus included in their estimates of gross national income at market prices and gross domestic product at market prices made in accordance with Regulation (EU) 2019/516 by adding to it the value of non-collected VAT, calculated using the formula set out in paragraph 2. This adjustment within value added (and consequently within operating surplus) shall be made by adjusting output and/or intermediate consumption.

In order to make the adjustment described in Article 1, the Member States may apply a method which is equivalent to that set out in Article 1, and which produces comparable results.

The Member States shall include in their respective inventory of the sources and methods used to produce GNI aggregates and their components in accordance with ESA 2010 (‘GNI Inventory’) a description of the sources and methods applied, and state the value of the adjustments made.

If a Member State can demonstrate to the Commission that the equivalent treatment of non-collected VAT is already implicit in its accounts, Article 1 does not apply to that Member State. Any Member State wishing to demonstrate that the equivalent treatment of non-collected VAT is already implicit in its accounts, shall provide the relevant description in the GNI Inventory.

Irrespective of whether a Member State uses the method described in Article 1 or, the method described in Article 2 or follows an equivalent treatment that ensures an implicit inclusion of non-collected VAT in its accounts as laid down in Article 4, every Member State shall – at least every 5 years – make a comparison of the theoretical VAT and actual VAT receipts, analyse the discrepancy and include the results of this analysis in the GNI Inventory, starting with the GNI Inventory for the verification cycle 2025-2029.

Decision 98/527/EC, Euratom is repealed.

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.