EU – VAT “gap report” for 2012 | KPMG | GLOBAL.
October 24: The European Commission this week released a value added tax (VAT) “gap study,” providing information concerning the amount of VAT due and the amount actually collected in the 26 EU Member States in 2012.
According to an EC release, an estimated €177 billion in VAT revenues was lost due to non-compliance or non-collection in 2012.
While non-compliance was viewed as a contributor to the revenue shortfall, the EC release states that the VAT gap is not only due to fraud but also to unpaid VAT resulting from bankruptcies and insolvencies, statistical errors, delayed payments, and legal avoidance.
