The EU VAT gap report outlines the estimated value of VAT collected in member states against the total expected VAT revenue for the year. The difference between these 2 values is known as the VAT gap.
The 2016 report has recently been released and reveals that the total VAT gap for the entire EU was estimated at EUR 147.1bn for the 2016 calendar year, with the largest gap being reported in Romania which stood at 35.88%. The lowest gap was in Luxembourg which was reported at 0.85%.
Of all 28 member states, the gap increased in 2016 in 6 territories, which were: