Did you know … some learnings out of the latest VAT Gap report based on 2021 as published by the European Commission
Total VAT Gap in the EU in 2021 is 60,6BNEUR a reduction by 38,7BnEUR (99,3BnEUR in 2020).
VAT gap as a % vs. GDP is 5,37% in 2021, vs. 9,65% in 2020.
Absolute amounts
- Italy has still the highest VAT Gap: 14Bn EUR
- Netherlands has the lowest VAT Gap: -0.1Bn EUR
Gap vs. revenues
- Highest – Romania: 36,7%
- Lowest: Netherlands: -0,2%
Best in class 2021 vs 2020
- Italy reduced its VAT gap by 10,7%
- Denmark increased its VAT gap by 0,7%
Highest standard VAT rate is still in Hungary with 27%, Luxembourg has the lowest standard VAT rate (17%). Average standard VAT rate in the EU is 21,44%.
Effective VAT rate
- Highest: Croatia 15,5%
- Lowest: 8,6%
- Average in the EU: 11,83%
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