EU VAT Gap shrinks to €160billion for 2014

30 September 2016

According to the annual VAT Gap study an estimated €160 billion in VAT revenues was lost due to non-compliance or non-collection during the year 2014, when compared with the same study from 2013. This shows a reduction in the gap of €2.5 billion.

The VAT Gap study is funded by the European Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion.

Each year the study sets out detailed data on the gap between the amount of VAT due and the amount actually collected in the 28 Member States. The main factors contributing to the VAT Gap are said to be evasion, complicated systems of VAT and mistakes due to multiple VAT rates.

LATEST NEWS

UPDATE: Philippines implements VAT on e-services...

The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services...

SEE MORE
VAT news
LATEST NEWS

European Commission grants extension of VAT split...

Despite deviating from Article 226 of Directive 2006/112/EC of the EU VAT Directive, Poland has been allowed to carry on using their VAT split payments regime...

SEE MORE
VAT news
LATEST NEWS

Ecuador switches to VAT registrations from withholding...

A new law, passed in Ecuador during December 2024, imposes VAT registration obligations for foreign providers of electronic services to consumers. Previously...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.