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

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2019/516 of the European Parliament and of the Council of 19 March 2019 on the harmonisation of gross national income at market prices and repealing Council Directive 89/130/EEC, Euratom and Council Regulation (EC, Euratom) No 1287/2003 (GNI Regulation) (1), and in particular Article 5(3) thereof,

Whereas:

(1) The treatment of non-collected value added tax (VAT) is one of the issues included in Commission Delegated Regulation (EU) 2020/2147 (2), which lists the issues to be addressed in every verification cycle so as to ensure the reliability, exhaustiveness and comparability of the gross national income at market prices (‘GNI’) data.

(2) For data on GNI to be reliable, exhaustive and comparable, the treatment in national accounts of non-collected VAT due to VAT fraud and due to insolvency needs to be clarified.

(3) Such treatment may require an adjustment related to the component of the discrepancy between theoretical VAT receipts and actual VAT receipts which is attributable to evasion not involving the connivance of the buyer (‘without complicity’) and the non-collected VAT due to insolvency.

(4) GNI aggregates and their components should be comparable across Member States and should comply with the relevant definitions and accounting rules of the European system of accounts 2010 (ESA 2010) as laid down in Annex A to Regulation (EU) No 549/2013 of the European Parliament and of the Council (3).

(5) The treatment laid down in Commission Decision 98/527/EC, Euratom (4) should be replaced by means of this Implementing Regulation, taking into account of the results of the work undertaken on this issue as part of the GNI verification.

(6) Decision 98/527/EC, Euratom should therefore be repealed.

(7) The measures provided for in this Implementing Regulation are in accordance with the opinion of the European Statistical System Committee referred to in Article 8 of Regulation (EU) 2019/516,

HAS ADOPTED THIS REGULATION:

Article 1

(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’).

Article 2

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.

Article 3

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.

Article 4

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.

Article 5

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.

Article 6

Decision 98/527/EC, Euratom is repealed.

Article 7

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

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 15 November 2023.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 91, 29.3.2019, p. 19.

(2) Commission Delegated Regulation (EU) 2020/2147 of 8 October 2020 supplementing Regulation (EU) 2019/516 of the European Parliament and of the Council by defining the list of issues to be addressed in every verification cycle (OJ L 428, 18.12.2020, p. 9).

(3) Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (OJ L 174, 26.6.2013, p. 1).

(4) Commission Decision 98/527/EC, Euratom of 24 July 1998 on the treatment for national accounts purposes of VAT fraud (the discrepancies between theoretical VAT receipts and actual VAT receipts) (OJ L 234, 21.8.1998, p. 39).