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Analysis of VAT Gap in the European Union – Did you know …?

Did you know … some learnings out of the latest VAT Gap report based on 2021 as published by the European Commission

Total VAT Gap in the EU in 2021 is 60,6BNEUR a reduction by 38,7BnEUR (99,3BnEUR in 2020).

VAT gap as a % vs. GDP is 5,37% in 2021, vs. 9,65% in 2020.

Absolute amounts

  • Italy has still the highest VAT Gap: 14Bn EUR
  • Netherlands has the lowest VAT Gap: -0.1Bn EUR

Gap vs. revenues

  • Highest – Romania: 36,7%
  • Lowest: Netherlands: -0,2%

Best in class 2021 vs 2020

  • Italy reduced its VAT gap by 10,7%
  • Denmark increased its VAT gap by 0,7%

Highest standard VAT rate is still in Hungary with 27%, Luxembourg has the lowest standard VAT rate (17%). Average standard VAT rate in the EU is 21,44%.

Effective VAT rate 

  • Highest: Croatia 15,5%
  • Lowest: 8,6%
  • Average in the EU: 11,83%

 

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