EU VAT Gap shrinks to €138 billion

16 October 2019

According to the annual VAT gap study an estimated €137.5 billion in VAT revenue was lost within the EU, due to non-compliance or non-collection during the year 2017. When compared with the same study from 2016 this shows a reduction in the gap of €7.9 billion.

The VAT gap study is funded by the European Commission as part of its work to reform the VAT system and clamp down on tax evasion within the European Union.

Each year the study sets out detailed data on the gap between the amount of VAT due and the amount of VAT 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.

Overall, the VAT Gap decreased in 25 out of the 28 EU Member States during 2016, with the biggest declines occurring in Poland, Malta and Cyprus.

LATEST NEWS

Emergency VAT measures to combat the financial impact...

Due to the negative financial impact that the Coronavirus pandemic is having on businesses all over the world, a number of tax authorities have implemented...

SEE MORE
LATEST NEWS

Slovenia confirms that all VAT reliefs issued as a...

Slovenia has confirmed that all VAT reliefs they have issued as a result of the Coronavirus pandemic, will end on 31 May 2020. To find out how this update...

SEE MORE
LATEST NEWS

Luxembourg confirm that VAT penalties issued for...

The Luxembourg tax authorities have confirmed that VAT penalties issued for the late filing of VAT returns have been reinstated. To find out how this update...

SEE MORE

Gated Content

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