- EU member states lost €93 billion in VAT revenues in 2020
- Estimates suggest that global VAT losses amount to €500 billion annually
- VAT gap refers to the difference between expected and collected VAT revenue
- Caribbean nations, with vulnerable economies, rely on VAT for revenue
- A large VAT gap leads to loss of public revenue and deficits
- High VAT gap indicates tax evasion and avoidance, causing fairness concerns
- VAT gap can signal weak governance and hinder economic growth
- Strategies to minimize VAT gap include enhancing tax administration, modernizing IT systems, and simplifying tax systems
- Revenue authorities are exploring technology-driven tools for VAT collection
- Refinements in VAT framework are necessary for optimized revenue collection.
Source: stvincenttimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
