- In 2022, the Dutch VAT compliance gap increased to 7.9 percent.
- The VAT policy gap remains high due to exemptions and reduced rates.
- The European Commission published the ‘VAT Gap in the EU, report 2024’ in December 2024.
- The report distinguishes between the VAT compliance gap and the VAT policy gap.
- The compliance gap is the difference between potential and actual tax revenues.
- The policy gap is due to reduced rates and exemptions.
- In 2022, the Dutch compliance gap was 7.9 percent, a 2.6 percentage point increase from 2021.
- The Ministry of Finance estimates the compliance gap at around 4.5 percent.
- Efforts are underway to reduce the gap through prevention, education, and targeted fraud prevention.
- In 2025, there will be a focus on combating carousel and intra-community fraud.
- The policy gap in 2022 was 48.7 percent, mainly due to exemptions and reduced rates.
- The Ministry of Finance aims for a simpler VAT system with fewer reduced rates and a uniform rate.
Source: taxence.nl
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.
