VAT Gap: Nearly €160 billion lost in uncollected revenues in the EU in 2014

On the 6 September 2016, the European Commission released figures indicating that €159.5 billion in Value Added Tax (VAT) revenues had been lost across the European Union in 2014.

In order to tackle fraud and the VAT Gap, the European Commission had adopted in April 2016 the Action Plan on VAT – Towards a single EU VAT area, which describes the necessary steps that need to be taken towards a single European Union VAT area and also states the ways how to adapt the VAT system to the realities of the internal market, the digital economy and the needs of the Small and medium-sized enterprises .

• Primary Source

European Commission: DG Communication: RAPID: MEMO/16/2909, 06.09.16: VAT Gap: Frequently asked questions http://europa.eu/rapid/press-release_MEMO-16-2909_en.htm

ESO: VAT Action Plan: Commission presents measures to modernise VAT in the EU http://www.europeansources.info/record/press-release-vat-action-plan-commission-presents-measures-to-modernise-vat-in-the-eu/

ESO: Background information: Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on an action plan on VAT. Towards a single EU VAT area - Time to decide http://www.europeansources.info/record/communication-on-an-action-plan-on-vat-towards-a-single-eu-vat-area-time-to-decide/

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