Study and Reports on the VAT Gap in the EU-28 Member States. 2020 Final Report

Author (Corporate) , ,
Publisher ,
Publication Date September 2020
ISBN 978-92-76-19429-3
EC KP-01-20-442-EN-N
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Annual 'VAT Gap' report published by the European Commission in September 2020, measuring the effectiveness of VAT enforcement and compliance measures in each Member States. It provides an estimate of revenue loss due to fraud and evasion, tax avoidance, bankruptcies, financial insolvencies as well as miscalculations.

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This report presents the findings of the 2020 Study to quantify the VAT Gap in the EU Member States, which is the seventh publication following the original Study conducted in 2013.

The authors present Value Added Tax (VAT) Gap estimates for 2018, fast estimates using a simplified methodology for 2019, the year immediately preceding the analysis, and include revised estimates for 2014-2017. They also include updated and extended results of the econometric analysis of VAT Gap determinants initiated and initially reported in the 2018 Report. As a novelty, the authors operationalise the econometric analysis to forecast potential impacts of the coronavirus crisis and resulting recession on the evolution of the VAT Gap in 2020 and 2021.

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European Commission: Press Release, 10/09/2020: VAT Gap: EU countries lost €140 billion in VAT revenues in 2018, with a potential increase in 2020 due to coronavirus
European Commission: VAT Gap: Frequently asked questions (10 September 2020)

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