- VAT Gap in Europe has decreased significantly due to measures implemented to combat VAT fraud
- VAT Gap decreased from 146 billion euros in 2017 to 61 billion euros in 2021, representing 5.3% of total VAT revenue
- Most significant decrease in VAT Gap was from 2020 to 2021, showing effectiveness of anti-fraud systems
- Variation in VAT Gap reduction among EU member states, with most countries seeing a decrease
- Netherlands, Finland, and Spain are top performers with VAT Gap representing less than 1% of total VAT revenue
- Romania and Malta are lagging behind in VAT Gap reduction due to ineffective tax controls
- Hungary and Poland have made significant progress in reducing VAT Gap through effective measures
- France has the second highest VAT Gap at 9.5 billion euros in 2021, but it only represents 4.9% of total VAT revenue
- Factors contributing to VAT Gap include tax fraud, evasion, errors, and insolvency, but measures have led to improvement in EU VAT Gap
- Implementation of new reporting methods has played a key role in reducing VAT Gap and combating tax fraud.
Source: easytax.co
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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