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
“EC expects further reduction of VAT gap in Poland” – Source: Warsaw Business Journal
“Italy top in EU for VAT evasion” – Source: ANSA
“Gramegna pleased with closing of VAT gap” – Source: Delano
“Romania records largest VAT collection gap of all EU countries” -Source: Business Review
“EU countries escaped VAT revenues of € 137 billion in 2017” – Source: TellerReport
“EU countries lost €137 billion in VAT revenues” – Source: Finchannel
“Romania’s VAT frauds exceeded budget deficit in 2017” – Source: RomaniaInsider