EU VAT Gap report – EU countries lost 137.5BN on VAT in 2017

The so-called ‘VAT Gap’ – or the overall difference between the expected VAT revenue and the amount actually collected – has reduced somewhat compared to previous years but remains very high.

During 2017, collected VAT revenues increased at a faster rate of 4.1% than the 2.8% increase of VAT Total Tax Liability. As a result, the overall VAT Gap in the EU Member States saw a decrease in absolute values of about EUR 8 billion or 11.2% in percentage terms.

The EU VAT Gap decreased by €8 billion to €137.5 billion in 2017. The Top 3 countries with highest VAT Gap are: Romania, Greece  and Lithuania.

The Top 3 countries with lowest VAT Gap are : Cyprus, Luxembourg and Sweden.

The countries that show major improvements are: Malta, Poland and Cyprus.

Source: European Commission


Press release

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