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VAT Gap Report Highlights Significant Losses in VAT Revenue Across Europe

VAT Gap Report Highlights Significant Losses in VAT Revenue Across Europe

The results of a lengthy study released by the European Commission highlight EU countries lost €137 billion in Value-Added Tax (VAT) revenues in 2017.

Referred to as the ‘VAT Gap’, or the overall difference between the expected VAT revenue and the amount actually collected, has reduced compared with previous years but still remains very high.

During 2017, collected VAT increased at a faster rate of 4% than the 2.8% increase of VAT Total Tax Liability. As a result, the overall VAT Gap in EU countries saw a decrease in absolute values of approximately €8 billion, or 11.2% in percentage terms.

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