1. EU VAT Forum 26 October 2016 – Brussels
VAT gap Study
EU VAT Forum
26 October 2016 – Brussels
Cristian Largeanu – DG TAXUD

2. VAT gap = VAT(Expectation – Collection)
VAT gap: 3 perspectives
VAT gap = VAT(Expectation – Collection)
VAT gap = revenue loss of 14%
VAT gap = EUR billion (2014)
The VAT GAP is the overall difference between the expected VAT revenue (VTTL) and the amount actually collected.
In 2014, the VAT Gap amounted to €159.5bn in the EU. This equates to a total revenue loss across the EU of 14.03%.
In 2014, the VAT Gap amounted to €159.5bn in the EU

3. Sources of the VAT gap Maladministration (week tax collection systems)
Fraud, evasion, avoidance
Bankruptcies and insolvencies
Miscalculations
1. Question: WHAT CAUSES THE VAT GAP ?
2. The VAT Gap is a measure of VAT compliance and enforcement that provides an estimate of revenue loss due to fraud and evasion, tax avoidance, bankruptcies, financial insolvencies, as well as miscalculations

4. 2014: VAT gap in EU Member States (%)
You can find out the full report, including figures on the website of the Commission. Here is the VAT gap as a percentage of the total liability.
The smallest gaps were observed in Sweden (1.24%), Luxembourg (3.80%) and Finland (6.92%). The largest gaps were registered in Romania (37.89%), Lithuania (35.94%) and Malta (35.32%)

5. 2014: VAT gap (EUR million)
You can find out the full report, including figures on the website of the Commission. Here the VAT gap in absolute values. You can also find

6. Lowering the VAT gap – role for the businesses
Factsheet: link available on dedicated page (
Apart from VAT Action Plan sets out ways to make the current EU VAT system simpler, more fraud-proof and business-friendly and the definitive regime (single European VAT area) proposed for 2017
Commission opinion about immediate measures to tackle fraud is that businesses should be involved.

7. Cristian Largeanu
DG TAXUD – Unit C4