What the evidence shows
Households and businesses “fight” every month to pay taxes. Despite the accuracy that insists on its last details AADE show that taxpayer compliance remains high.
Between January and October 2023, the collection rate of the four main taxes, ENFIA, VAT, tax of income of natural persons and of income tax of legal entities, reached 84.39%. As a priority, taxpayers choose to pay VAT, after ENFIA and leave income tax for last.
Businesses show greater consistency in their payments as they pay income tax on time.
More specifically, the AADE data for the ten months of January – October 2023 show the following:
- VAT. The timely payment of VAT is at high levels, reaching 84.96%. Of the 13.113 billion euros budgeted for the ten months of 2023, the State collected on time 11.104 billion euros.
- Corporate income tax. The timely payment of corporate income tax was 90.19%. Businesses prove to be consistent in their tax obligations. Of the 4.958 billion euros that should have been paid in the 10th month, 4.471 billion euros were paid on time.
- LIGHT. The collectability of ENFIA is at high rates. It reached 79.18%. Of the 1.827 billion euros that had been confirmed, 1.446 billion euros were collected.
- Personal income tax. Collectability was 76.01% in the ten-month period as taxpayers paid 2.074 billion euros on time out of 2.729 billion euros.
In 2024, taxpayers will be asked to pay a tax bill totaling €63 billion. July and August are the hardest months for taxpayers as the new budget calls for €6.7 billion in taxes to be collected in July and €6.4 billion in August. On the contrary, the month with the lowest tax collections and the fewest tax obligations is March, as the collection of approximately 3.79 billion euros is expected.
