- The EU VAT gap in 2023 was around EUR 128 billion, indicating significant uncollected or unreported VAT revenue.
- VAT compliance rates vary widely, with Romania and Malta having the highest gaps (30% and 24.2%), and Austria and Finland the lowest (1% and 3%).
- For the first time, the report includes EU candidate and potential candidate countries, with VAT’s share of government revenue ranging from 33% in Serbia to 65% in Bosnia and Herzegovina.
- The report introduces improved analysis distinguishing between revenue losses from national policy choices and those from EU-mandated VAT rules.
- Recommendations include enhancing estimation capacity, reviewing policies, systematic reporting, adopting common frameworks, and leveraging digitalization to reduce the VAT gap.
Source: vatabout.com
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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