- Most EU Member States improved VAT collection from 2018 to 2022
- A report by the European Commission on 18 December 2024 noted a decrease in the VAT Gap
- The VAT Gap measures the difference between expected and actual VAT revenues
- In 2022, the VAT loss was approximately €89 billion, down from €121 billion in 2018
- Losses were due to factors like fraud, evasion, bankruptcies, and miscalculations
- Digital tax systems, real-time reporting, and e-invoicing have positively impacted VAT compliance
- Ongoing reforms are essential for further reducing the VAT gap and enhancing efficiency
- The report included an analysis of Missing Trader Intra-Community fraud, which significantly affects VAT compliance
- EU losses from this type of fraud ranged from €13 to €33 billion annually from 2010 to 2023
Source: etaf.tax
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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