According to the annual VAT Gap report, an estimated €61 billion in VAT revenue was lost within the European Union (EU) due to non-compliance or non-collection of VAT during the year 2021. When compared with the same study from 2020, this shows a decrease of €38 billion.
The VAT gap study is funded by the European Commission as part of its work to reform the VAT system and to clamp down on tax evasion within the EU.
Source: fiscalsolutions.co.uk
