- State Secretary Van Rij shares the government’s response to the report ‘VAT Gap in the EU, report 2023’ with the Dutch Parliament
- The report distinguishes between two categories of VAT gaps: compliance gap and policy gap
- Netherlands performs well in terms of compliance gap, but it remains a joint EU effort to reduce it
- The approach of the Tax Authority has played a role in reducing the compliance gap in recent years
- The European Commission published a package of VAT rules for the digital era in December 2022
- The package aims to reduce administrative burdens, compliance costs, combat fraud, and improve enforcement
- The package includes digital reporting obligations, a platform fiction for short-term rentals and transport services, and one VAT registration in the EU
- The policy gap is much larger than the compliance gap and was estimated at 44.9% for the entire EU in 2021
- Evaluation of the reduced VAT rate showed that it is partially effective but generally not efficient in achieving its goals
Source: taxence.nl
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.
