- The annual VAT Gap report estimates €89 billion in VAT revenue was lost in the EU in 2022
- This loss marks an increase of €13 billion from 2021
- The European Commission funds the VAT gap study to help reform the VAT system and reduce tax evasion in the EU
- The study provides data on the difference between expected VAT and actual VAT collected in EU member states
- Main factors for the VAT gap increase include VAT fraud, evasion, avoidance practices, bankruptcies, financial insolvencies, and administrative errors
- The percentage of VAT lost in 2022 was 6.03% of expected revenues, an increase from 5.63% in 2021
Source: fiscalsolutions.co.uk
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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