EU loses 193bn euro in VAT fraud

An estimated 193 billion euro in VAT revenues (1.5 percent of GDP) was lost in the EU due to non-compliance or non-collection in 2011. This figure was published Thursday in a new study supported by the European Commission on the VAT Gap in Europe, as well as its wider campaign to clamp down on tax evasion. The study sets out detailed data on the gap between the amount of VAT due and the amount actually collectaed in 26 EU Member States between 2000-2011. Algirdas Semeta, EU Commissioner for Taxation, commented in a press statement \"The amount of VAT that is slipping through the net is unacceptable; particularly given the impact such sums could have in bolstering public finances.\" \"However, there is also a positive message to be drawn from today\'s findings. Our ambitious reform of the VAT system, the EU measures to combat tax evasion and our recommendations for national tax reforms, are all targeted in the right direction,\" he added.