The European Commission’s latest “VAT Gap” report shows an increase in VAT compliance in 2021, with the compliance gap dropping from €99 billion in 2020 to €61 billion in 2021. However, the largest compliance gaps were observed in Romania, Malta, Greece, and Lithuania. The smallest compliance gaps were registered in the Netherlands, Finland, Spain, and Estonia. The decrease in the VAT compliance gap is attributed to the digitalization of the tax system and e-invoicing, as well as government support measures implemented during the COVID-19 pandemic. However, the decrease in bankruptcies may have also played a role in increasing VAT compliance.
Source Tax Foundation
See also
Latest Posts in "European Union"
- EU Introduces Flat EUR 3 Customs Duty Per Item for Low-Value Imports from July 2026
- EU VAT Compliance Gap Widens in 2023, Digital Controls Urged to Curb Rising Evasion
- Shaping Fair and Competitive Taxation: Inequality, Growth, and Innovation in the Global Economy
- Zero-Rated Intra-EU Goods Sales: VAT Rules, Conditions, and Compliance for B2B Transactions
- CBAM: Expansion to cast iron, steel and complex metal products from 2028
