EU: VAT gap statistics for 2019

The VAT gap decreased by almost €6.6 billion (compared to a decrease of €4.6 billion in 2018).

The VAT gap decreased by almost €6.6 billion.

The European Commission today issued a release reporting the value added tax (VAT) gap statistics for 2019.

According to the EC release, EU Member States lost an estimated €134 billion in VAT revenues in 2019 due to VAT fraud and evasion, VAT avoidance and optimisation practices, bankruptcies and financial insolvencies, as well as miscalculations and administrative errors. Although the overall “VAT gap”—the difference between expected revenues in EU Member States and the revenues actually collected—has been improving for the years between 2015 and 2019, the full extent of the coronavirus (COVID-19) pandemic on consumer demand and therefore VAT revenues in 2020 remains unknown.

In nominal terms, the VAT gap decreased by almost €6.6 billion (compared to a decrease of €4.6 billion in 2018). 


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