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EC: largest VAT Gaps were reported in Romania
EU countries lost an estimated total of 152 billion euros in Value-Added Tax (VAT) revenues in 2015, according to a new study by the European Commission released on Thursday.
While average EU figures are improving, individual VAT collection performances vary significantly amongst Member States. The largest VAT Gaps were reported in Romania (37.2 percent), Slovakia (29.4 percent) and Greece (28.3 percent). The smallest gaps were observed in Spain (3.5 percent) and Croatia (3.9 percent). In absolute terms, the highest VAT Gap of 35 billion euros was in Italy.
The VAT gap decreased in most member states, with the strongest improvements in Malta, Romania and Spain. Seven member states saw small increases: Belgium, Denmark, Ireland, Greece, Luxembourg, Finland and the UK.
The VAT gap, which is the overall difference between the expected VAT revenue and the amount actually collected, again demonstrates the need for serious reform so that Member States can make full use of VAT revenues for their budgets, according to the European Commission.
While the collection of VAT revenues shows some signs of improvement, the missing amounts remain unacceptably high.