Significant Reduction in VAT Gap in Greece and EU in 2021: Report

• The VAT gap in Greece and the EU decreased in 2021.
• The digitalization of tax systems, real-time transaction reporting, and electronic invoicing helped reduce the VAT gap.
• Most EU member states made progress in VAT compliance in 2021.
• The annual VAT gap study showed that member states lost around €61 billion in VAT in 2021, compared to €99 billion in 2020.
• This progress in VAT compliance is positive as lost VAT revenues can have a negative impact on government funding for public goods and services.
• Targeted policy responses, such as digitalization and electronic invoicing, played a role in this positive change.
• Italy and Poland had particularly notable reductions in their VAT gaps.
• The VAT gap increased only in Denmark and Sweden.
• The largest reductions in the VAT gap were observed in Italy, Cyprus, Poland, Belgium, and Ireland.

Source: taxheaven.gr

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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