- The European Commission has released the VAT Gap Report 2023, which assesses the difference between expected and actual VAT revenue in EU Member States.
- The latest report shows that most Member States made progress in enforcing VAT compliance in 2021, resulting in a decrease in the overall EU VAT Gap by €38 billion compared to 2020.
- The reduction in the VAT Gap can be attributed to targeted policy responses, such as digitalisation of tax systems and real-time reporting of transactions, as well as temporary factors such as COVID-19 government support measures.
- The new report highlights the negative impact of lost VAT revenues on public goods and services such as schools, hospitals, and transport.
- The Commission has proposed a move to a cross-border digital reporting system based on e-invoicing for business-to-business transactions as part of the 2022 VAT in the Digital Age proposals.
Source Orbitax
Latest Posts in "European Union"
- CJEU Rules Loyalty Points Are Not Vouchers for VAT Purposes, Treated as Discounts Instead
- CJEU Rules In-Game Gold Sales Subject to VAT, Not Exempt as Currency or Voucher
- Comments on ECJ C-472/24: Court Rules Virtual Gold Not Exempt from VAT
- Comments on ECJ C-436/24 (Lyko): Court Rules Loyalty Points Do Not Qualify as Vouchers
- Comments on ECJ C-409/24 to C-411/24: Court Allows Exclusion of Ancillary Services from Reduced VAT
