The new government clearly expressed its intention to introduce measures to reduce the Belgian VAT Gap to the level of neighbouring countries.
The VAT Gap is the difference between the expected VAT revenues and the VAT revenues that are effectively collected. This difference is not only caused by revenue losses due to tax fraud or tax evasion, but is also a result of bankruptcies, administrative mistakes or malfunctioning tax collection, to name just a few.
Based on a study by the European Commission (EC) published in September 2020, the estimated Belgian VAT Gap for 2018 amounted to 3.6 billion euros, or 10.4% of the expected total VAT revenue.
Source PwC
