The VAT gap is the overall difference between the expected VAT revenue based on VAT legislation and ancillary regulations and the amount actually collected. In 2020, the VAT gap was estimated at EUR 93 billion in the Union. A significant part of the VAT gap consists of fraud, in particular missing trader intra-Community fraud, estimated in the range of EUR 40–60 billion. In the report on the final outcome of the Conference on the Future of Europe, which was published in May 2022, citizens called for measures to harmonise and coordinate tax policies within the Member States in order to prevent tax evasion and avoidance, as well as measures to promote cooperation between Member States to ensure that all companies in the Union pay their fair share of taxes. The VAT in the Digital Age initiative is consistent with those goals.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
