European Union 2020 VAT gap study shows a loss of €93 billion

28 December 2022

According to the annual VAT gap study, an estimated €93 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or non-collection during the year 2020. When compared with the same study from 2019, this shows a decrease of €31 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 EU.

Each year, the study sets out detailed data on the gap between the amount of VAT due and the amount of VAT collected in EU member states. The EU confirmed that the four main factors contributing to the VAT gap are VAT fraud and VAT evasion, VAT avoidance practices and optimisation, bankruptcies and financial insolvencies and administrative errors due to complicated VAT systems

The report also confirmed that the countries showing the largest gaps were Romania (35.7%), Malta (24.1%), and Italy (20.8%), with the smallest VAT Gaps being Finland (1.3%), Estonia (1.8%) and Sweden (2%).

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

Get in touch

Let us solve your current business VAT challenges

CONTACT US
LATEST NEWS

UPDATE: Greece makes VAT rate reduction permanent on...

Ministry of Finance has announced that the reduced VAT rate of 13% on public transport, coffee supplies, takeaways, and deliveries of non-alcoholic drinks will...

SEE MORE
VAT news
LATEST NEWS

Latvia to introduce mandatory e-invoicing for B2B and...

Latvia’s Ministry of Finance is proposing to introduce a mandatory electronic invoicing regime for business to business (B2B) and business to government...

SEE MORE
VAT news
LATEST NEWS

Colombia issues changes to Significant Economic...

At the beginning of this year Colombia implemented changes to its Significant Economic Presence (SEP) rules for foreign companies. These rules allow for...

SEE MORE
VAT news

Gated Content

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