- The VAT gap in Greece and the EU decreased in 2021.
- The digitalization of tax systems, real-time transaction reporting, and electronic invoicing helped reduce the VAT gap.
- Most EU member states made progress in VAT compliance in 2021.
- The annual VAT gap study showed that member states lost around €61 billion in VAT in 2021, compared to €99 billion in 2020.
- This progress in VAT compliance is positive as lost VAT revenues can have a negative impact on government funding for public goods and services.
- Targeted policy responses, such as digitalization and electronic invoicing, played a role in this positive change.
- Italy and Poland had particularly notable reductions in their VAT gaps.
- The VAT gap increased only in Denmark and Sweden.
- The largest reductions in the VAT gap were observed in Italy, Cyprus, Poland, Belgium, and Ireland.
Source: taxheaven.gr
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.
