The European Commission published its report reviewing and diagnosing the administration of value added tax (VAT) in the European Union on Thursday 7 April, and issued a series of recommendations to help Member States improve tax revenue collection, procedures and control processes.
VAT accounts for around 7% of EU GDP and is one of the main sources of revenue for Member States. However, the loss of VAT revenue represents a significant loss of earnings, estimated at €134 billion in 2019.