According to a PwC report: “11 percent of VAT revenue is lost annually through fraud – principally ‘missing trader’ or ‘carousel fraud’ – which equates to in the region of €100 billion.
Did it increase?
A recent European Union study (2013) says the bloc’s 28 member nations may be losing almost 200 billion euros ($267 billion) annually in value-added tax revenues due to tax evasion and a lack of enforcement.
EU Tax Commissioner Algirdas Semeta said Thursday the amount of revenues slipping through the governments’ nets is “unacceptable, particularly given the impact such sums could have in bolstering public finances.”
The study for the European Commission, the bloc’s executive arm, found member states lost an estimated 193 billion euros ($258 billion) in VAT revenues in 2011, or 1.5 percent of the EU’s economic output.
European Commission – Press Release – Fight against fraud: new study confirms billions lost in VAT Gap
Estimates of the VAT Gap per Member State
Find more information about VAT fraud in the following links:
- Indirect Tax Function Effectiveness (indirecttaxtechnology.com)
- The KEY Group measures Indirect Tax Performance and improves where necessary (indirecttaxtechnology.com)
- How Internal Audit could contribute value in realizing indirect tax objectives? (indirecttaxtechnology.com)
- The impact of VAT rate change on company’s compliance costs (indirecttaxtechnology.com)
- Merger and Acquisition – Integration And Indirect Tax: Managing the Moving Parts Before, During, And After a Transaction (indirecttaxtechnology.com)
- Digital Flyer – Taxmarc™ Product Overview (indirecttaxtechnology.com)
- Everything You Always Wanted to Know About VAT in SAP * But Were Not Aware to Ask (indirecttaxtechnology.com)
- Taxmarc™: your best SAP solution for Indirect Tax Automation (indirecttaxtechnology.com)