The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Technical Assistance Report discusses results of applying the Revenue Administration Gap Analysis Program Value-added Tax (VAT) gap estimation methodology to Estonia for 2007-2012. It highlights that between 2009 and 2012, VAT receipts failed to keep pace with nominal GDP and final consumption growth, owing to a growing compliance gap. Within the overall VAT compliance gap, the assessment gap in Estonia increased from 2009-2011, although the collections gap grew until 2009 and then decreased. The decrease of collections gap followed the introduction of automated management and sanctions of debt in 2010.