The European Commission today issued a release reporting that EU countries lost an estimated €140 billion in value added tax (VAT) revenues in 2018.
The EC release states that the overall “VAT gap”—the difference between expected revenues in EU Member States and the revenues actually collected—has improved marginally in recent years. However, figures for 2020 forecast a reversal of this trend, with a potential loss of €164 billion in 2020 due to the effects of the coronavirus (COVID-19) pandemic on the economy.
In nominal terms, the overall EU VAT gap slightly decreased by almost €1 billion to €140.04 billion in 2018 (down from a decrease of €2.9 billion in 2017).
The EC also released a set of “frequently asked questions” (FAQs) concerning the VAT gap.
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