EU: VAT gap statistics for 2022
The European Commission issued a release reporting VAT gap statistics for 2022.
The European Commission (EC) today issued a release reporting the value added tax (VAT) gap statistics for 2022.
According to the EC release, the annual report, which measures the difference between theoretically expected VAT revenues and the amount actually collected, shows that EU member states lost around €89 billion in VAT in 2022, compared to €121 billion in 2018. This figure represents revenues lost primarily to VAT fraud, evasion, avoidance, non-fraudulent bankruptcies, miscalculations, and other factors.
The latest report highlights that targeted policy measures have made a significant difference in reducing the VAT gap, particularly those related to the digitalisation of tax systems, real-time transaction reporting, and e-invoicing. Additionally, the report emphasises that ongoing reforms are critical to further reducing the VAT gap, to facilitate more efficient collection and prevent fraud.