On 4 September 2015, the European Commission published the Study to quantify and analyse the VAT Gap in the EU Member States - 2015 Report. The report looks at the VAT Gap and Policy Gap in 26 EU Member States during 2013 in comparison to 2012. The report will be used to help address measures to improve VAT compliance and enforcement and serve as a benchmark.
The VAT Gap is the amount of VAT due or expected versus the actual amount collected. According to the report, 15 Member States decreased their VAT Gap in 2013 while 11 saw an increase. Overall, however, the VAT Gap stayed constant at 15.2%. The VAT Gaps in each Member State ranged from a low of 4% in Finland, the Netherlands and Sweden, to a high of 41% in Romania.
The Policy Gap is a measure of the amount of VAT a Member State could collect if it applied a standard rate of VAT for all consumption of goods and services instead of certain reduced rates and exemptions that are actually applied. Overall, the Policy Gap is much larger than the VAT Gap, with an average of 42%.
Click the following links for the Study to quantify and analyse the VAT Gap in the EU Member States - 2015 Report, and a European Commission fact sheet - The VAT Gap: Questions and Answers.