Dominican Republic: Revenue Administration Gap Analysis Program (RA-GAP) – Gap in the Tax on Transfers of Industrialized Commodities and Services (ITBIS)

A capacity development mission by the Fiscal Affairs Department (FAD) of the IMF was conducted in a hybrid format, comprising three activities between December 2024 and March 2025. The mission aimed to estimate the gap in the Tax on the Transfer of Industrialized Commodities and Services (ITBIS) using the VAT Gap Estimation Model (VGEM) under the Revenue Administration Gap Analysis Program (RA-GAP). Between 2018 and 2023 the compliance gap ranged from 36.5 to 41.6 percent of potential revenues. The estimated compliance gap levels indicate that resources equivalent to around 3 percent of GDP could potentially be mobilized. Notably, the sectors with the greatest potential for resource mobilization include construction and trade, hospitality and restaurants, as well as professional services.