A staggering €159.5 billion in Value Added Tax (VAT) revenues were lost across the EU in 2014 according to figures released by the European Commission today.
Research shows that the overall difference between the expected VAT revenue and the amount actually collected (the so-called 'VAT Gap') amounted once again to an unacceptably high yearly figure. The findings support recent calls by the Commission to overhaul the EU's VAT system to tackle fraud and make it more efficient. Member States must now follow up on the Commission's Action Plan towards a single VAT area presented last April by agreeing on the way forward towards a definitive VAT regime for cross-border trade in the Union. More immediate measures to tackle the problem of VAT fraud have already been set in motion, but today's figures show that deeper reforms are needed. 
The VAT Gap rate ranged from a high of 37.9% of uncollected VAT in Romania to a low of only 1.2% in Sweden. In absolute terms, the highest VAT Gap of €36.9 billion was recorded in Italy while Luxembourg had the lowest of €147 million.
Press release

Informatiesoort: Nieuws

Rubriek: Europees belastingrecht, Omzetbelasting

H&I: Previews


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