EU VAT Gap for 2019

The EU VAT Gap for 2019 has been published, showing a decrease in the overall EU VAT Gap by almost €6.6 billion to €134 billion.

The VAT Gap study records the difference between the VAT due and the actual VAT revenues generated by Member States, representing the VAT revenues lost compared to a theoretical VAT calculation. The underlying reasons for this VAT Gap can be grouped into four broad categories: (1) VAT fraud and VAT evasion, (2) VAT avoidance practices and optimisation, (3) bankruptcies and financial insolvencies, and (4) administrative errors.

Malta recorded the third highest highest national VAT compliance gap in 2019, with 23% of VAT revenues going missing in 2019 (following Greece with 25.8% and Romania with 34.9%).

View the full VAT Gap report here.