Research shows that the overall difference between the expected VAT revenue and the amount actually collected (the so-called 'VAT Gap') amounted once again to an unacceptably high yearly figure.

The findings support recent calls by the Commission to overhaul the EU's VAT system to tackle fraud and make it more efficient. Member States must now follow up on the Commission's Action Plan towards a single VAT area presented last April by agreeing on the way forward towards a definitive VAT regime for cross-border trade in the Union. More immediate measures to tackle the problem of VAT fraud have already been set in motion, but the figures just released by the Commission show that deeper reforms are needed.

The VAT Gap rate ranged from a high of 37.9% of uncollected VAT in Romania to a low of only 1.2% in Sweden. For more information see the press release and the frequently asked questions. You will find the full report, an interactive map of the VAT gap at national level and a fact sheet on our dedicated web page.