Impact of the VAT Action plan on the VAT Gap in the Nordic Member States.

The thesis researched the benefits of the VAT Action plan proposed by the European Commission to simplify and modify the VAT collecting process rules. The VAT Action plan aimed to examine VAT rates within the EU, reorganize cross-border trade and fight against fraudulent actions. The development of such complex reform required a significant amount of time and resources, and cooperation among all Member States. The thesis explained the theory behind the VAT system and examined problematic of fraud. Quantitative and qualitative methods were used for data analysis. The qualitative analysis measured the subject of reform and its need for the EU market area. At the same time, quantitative analysis measured the impact of fraudulent actions on VAT revenue within the European Union. The relation between them provided a result and evaluated the future model's efficiency in the VAT collection scenario. The results indicated the importance realization of the European Commission's decision to implement the VAT Action plan. However, due to complex bureaucratic apparatus, the real-time implementation overextended in time, with multiple implementation stages. The results of this work showed that implementing of the VAT Action plan stages would impact on both B2B and B2C companies, as well as it will bring more VAT income to Member States. Even the most prosperous countries - Sweden, Finland, and Denmark will gain decent results from implementing new rules and reforms