Press Release: Fight against fraud: new study confirms billions lost in VAT Gap

An estimated €193 billion in VAT revenues (1.5% of GDP) was lost due to non-compliance or non-collection in 2011, according to a new study on the VAT Gap in Member States.

The study, published on 19 September 2013, was funded by the European Commission as part of its work to reform the VAT system in Europe, as well as its wider campaign to clamp down on tax evasion. The study sets out detailed data on the gap between the amount of VAT due and the amount actually collected in 26 Member States between 2000-2011.

• Primary Source

European Commission: RAPID: Memo, MEMO/13/800: VAT Gap: Frequently asked questions http://europa.eu/rapid/press-release_MEMO-13-800_en.pdf

European Commission: Taxation and Customs Union: Studies: Study to quantify and analyse the VAT Gap in the EU-27 Member States (September 2013) http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/common/publications/studies/vat-gap.pdf

ESO: Background information: France's €30 billion VAT gap revealed http://www.europeansources.info/record/frances-e30-billion-vat-gap-revealed/

EurActiv, 20.09.13: Widening VAT hole fuelled by fraud, EU confirms http://www.euractiv.com/euro-finance/carousel-fraud-ramps-increase-va-news-530588

ESO: Background information: Council approves measures to tackle VAT fraud schemes http://www.europeansources.info/record/press-release-council-approves-measures-to-tackle-vat-fraud-schemes/

---