VAT revenue collection has failed to show significant improvement across EU Member States. The total amount of VAT lost across the EU is estimated at €168 billion.
VAT revenue collection has failed to show significant improvement across EU Member States according to the latest figures released by the European Commission.
Based on VAT collection figures from 2013, the overall difference between the expected VAT revenue and the amount actually collected (the so-called "VAT Gap") did not improve on 2012. While 15 Member States including Latvia, Malta and Slovakia saw an improvement in their figures, 11 Member States such as Estonia and Poland saw deterioration.
The total amount of VAT lost across the EU is estimated at €168 billion, according to the report. This equates to 15.2% of revenue loss due to fraud and evasion, tax avoidance, bankruptcies, financial insolvencies and miscalculation in 26 Member States.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs said: "This important study highlights once again the need for further reform in VAT collection systems across the EU. I urge Member States to take the steps needed to fight tax evasion and tax fraud at all levels. This remains a burning issue and is at the top of this Commission's agenda."
Full press release
© European Commission
Hover over the blue highlighted
text to view the acronym meaning
over these icons for more information
No Comments for this Article