Between 2018 and 2022, Member States made significant progress in complying with value added tax (VAT) rules, but continued efforts are still needed, according to the European Commission on Wednesday 18 December, writing in its annual report on the VAT gap in the European Union.
This ratio measures the difference between the VAT revenue theoretically expected and the amount actually collected. In total, Member States lost around €89 billion in VAT by 2022, compared with €121 billion in 2018. These losses are mainly due to fraud, tax evasion and planning, non-fraudulent bankruptcies, miscalculations and other factors.
Targeted policy measures have made a significant difference, particularly those relating to the digitalisation of tax systems, real-time transaction reporting and electronic invoicing. In addition, the report stresses that the reforms underway are essential if we are to continue to reduce the VAT gap, ensure more efficient collection and prevent fraud.
Read the report: https://aeur.eu/f/evm (Original version in French by Anne Damiani)