EU lost €134bn in VAT but downward spiral continues

The EU lost an estimated €134bn in VAT in 2019 according to a new report released by the European Commission. This figure represents revenues lost to VAT fraud avoidance bankruptcies and financial insolvencies as well as miscalculations and administrative errors. 

Following continued efforts to improve the situation both at EU and national level the relative positive trend continued in 2019 with the overall VAT gap in EU member states decreasing by almost €6.6bn to €134bn a marked improvement on the previous year's decrease of €4.6bn. This downward trend is now in its seventh consecutive year.

Romania recorded the highest national VAT compliance gap at 34.9%. It was followed by Greece (25.8%) and Malta (23.5%). The smallest gaps were in Croatia (1%) Sweden (1.4%) and Cyprus (2.7%). In absolute terms the highest VAT gaps were recorded in...