Reducing the VAT “gap” from 13.7% in 2022 to 6.99%, the EU average is at the heart of the Independent Public Revenue Authority‘s (ADEA) ambitious strategic plan for 2025-2029, a change that is projected to generate an extra €1.4 billion in annual revenue. At the same time, the use of artificial intelligence in audits aspires to enhance transparency and combat tax evasion.
However, the AADE’s goals are not only about increasing public revenues but also about improving the daily experience of taxpayers. Citizens will see immediate improvements in their dealings with the tax authorities, as 95% of digital requests will be processed within 24 hours, while automated tax refunds will be completed in less than 30 days.
In terms of audits, freelancers are being targeted by the AADE, with a forecast to reduce their tax evasion by 40% by 2029. In addition, the plan includes
- – doubling the collectability of overdue debts,
- – an increase in late filing to 96% for income tax and 99% for VAT, and
- – to ensure 90% of payments are made on time.
Great importance is also given to improving the service to citizens and businesses. The aim is to clear 90% of import declarations within one hour, as well as to strengthen the technological infrastructure with modern applications and equipment. At the same time, it is planned to train all ADSE staff in the new systems and technologies, while 30% of the staff will focus exclusively on audits.
This plan is based on the strategy for the transition to “Tax Administration 3.0“, which combines cutting-edge technologies, such as artificial intelligence, with transparency, data-based decision-making, and proactive risk management at its core. The gradual reduction of the corruption perception index is also a key objective, as the plan states that taxpayers’ trust in the administration is being strengthened.
Finally, it is worth noting that the modernisation of the ADEA is supported by the Recovery and Resilience Fund, which is financing the replacement of the Authority’s core information systems, the development of new applications, and the procurement of modern equipment.
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