New VAT gap figures published by the European Commission | Pincvision.
On October 23 2014, the latest VAT Gap study was published by the European Commission. The VAT Gap can be defined as the difference between the amount of VAT actually collected and the VAT revenue expected. The VAT Gap can be seen as an indicator of the effectiveness of VAT enforcement and compliance measures as it arises as a consequence of revenue loss through cases of fraud and evasion, tax avoidance, bankruptcies, financial insolvencies as well as miscalculations.
The updated report follows the 2013 VAT Gap report that covered the period 2007-2011. The new study covers 26 MS (Cyprus and Croatia are not included among others due to unfinished national accounts) and relates to the calendar year 2012. The lowest VAT Gap was in the Netherlands, Finland and Luxembourg and the highest in Romania, Slovakia and Lithuania. With an estimated Euro 177 billion Vat revenue loss, the need for an easier and modernized VAT system is the more clear. There is work to be done.
Click the link if you want to know more about VAT Gap figures published by the European Commission
Author: Danielle van der Meulen-Idema, Sr. VAT Specialist
