- The EU’s VAT compliance gap rose to €128 billion in 2023, about 9.5% of total VAT liability, reversing pandemic-era improvements.
- The article distinguishes the compliance gap (lost to fraud, evasion, and error) from the policy gap (revenue foregone through exemptions and reduced rates), arguing enforcement and policy need different fixes.
- Major drivers include organized carousel/missing-trader fraud, cross-border e-commerce and marketplace abuse, cash underreporting, and outdated tax administration systems that rely on delayed audits and siloed data.
- Countries making the biggest gains have used digitalization, real-time transaction reporting, and e-invoicing; Italy and Poland saw large VAT-gap reductions, though the wider EU gap later widened again in 2023.
Source: mlogica.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.
Latest Posts in "Serbia"
- Ministry of Finance Announces Second Workshop on Preliminary VAT Return in SEF
- Annex 1: List of Sources for Preliminary VAT Return
- Norway Confirms Phased E-Invoicing and Digital Bookkeeping Requirements
- Serbia’s KD 2025 May Affect Fiscalization Exemptions
- Fiscal Solutions’ Community Day 2026 to Address Fiscalization, E-Invoicing and POS Globalization (Oct 15)
