EU countries lost almost EUR 150 billion in Value-Added Tax (VAT) revenues in 2016, according to a new Commission study published on 21 September. In view of the recent data, the Commission is urging Member States to move forward as soon as possible on the broad VAT reform it proposed last year. The reform would improve and modernise the system for governments and businesses alike, while making it more robust and simpler to use for companies. The so-called 'VAT Gap' shows the difference between expected VAT revenue and the amount actually collected. In nominal terms, the VAT Gap decreased by EUR 10.5 billion to EUR 147.1 billion in 2016, a drop to 12.3% of total VAT revenues compared to 13.2% the year before. Member States’ individual performance still varies widely, however. The gap decreased in 22 Member States with Bulgaria, Latvia, Cyprus, and the Netherlands displaying a decrease in each case of more than 5 percentage points in VAT losses. In contrast, the VAT Gap increased in six Member States: Romania, Finland, the UK, Ireland, Estonia, and France. While Member States have taken measures to improve VAT collection, the current figures show that reform of the current EU VAT system combined with better cooperation at the EU level are needed.