In the EU, the VAT compliance gap in 2022 amounted to 7.0% of the VAT Total Tax Liability (VTTL). Compared to 2018, the VAT compliance gap reduced by 4.2 percentage points. The development of the VAT compliance gap in EU Member States between 2018 and 2022 is shown in the map below.

Feb 3, 2025 · The VAT policy gap is made up of two components: the rate gap and the exemption gap. The former represents lost VAT revenue due to reduced VAT rates, while the latter represents lost VAT revenue due to certain goods and services being exempt from the VAT.

Jan 9, 2025 · The EU VAT Gap 2024 report offers an extensive analysis of the value-added tax (VAT) compliance and policy gaps across the EU.

Dec 18, 2024 · In 2023, the VAT revenue-to-GDP ratio amounted to 7.2% of the EU GDP and 15.7% of total government revenue. This makes VAT essential for financing the provision of public goods and services and for ensuring the financial stability of governments.

Jan 9, 2025 · The VAT compliance gap in the EU was 7% of the theoretical total in 2022, representing €89.3 billion in uncollected revenue; Digital transactions have improved VAT compliance by reducing cash-based tax evasion, though e-commerce poses collection challenges

VAT rates and the reasons behind the size of and trends in the VAT gap among the Member States. The briefing paper examines the great heterogeneity in VAT systems, VAT gaps and compliance costs across the Member States The distributional effects of reduced.

Jan 10, 2023 · The Compliance Gap (commonly called the “VAT Gap”) is defined as the difference between the tax collected and the tax that should be collected if all taxpayers, consumers, and businesses fully complied with the VAT rules.

What is the VAT Gap? The VAT Gap is the overall difference between expected VAT revenues (or ‘VAT Total Tax Liability' (VTTL)) and the amount actually collected, in absolute or percentage terms. The VTTL is an estimated amount of VAT that is theoretically collectable based on VAT legislation and ancillary regulations.

The VAT GAP is the overall difference between the expected VAT revenue and the amount actually collected. In 2020, the VAT Gap in the EU27 was €93 billion, or 9.1% of the total expected VAT revenues.

Oct 24, 2023 · This report aims to support tax administrations in their VAT gap monitoring efforts. It scrutinises VAT compliance gaps and VAT policy gaps in all EU Member States using a standardised methodology and data sources, which allows for comparisons across time and against other Member States.