The significant loss of VAT resources for EU countries due to Covid19September 10, 2020
Hat: The significant loss of VAT resources for EU countries due to Covid19
According to forecasts for 2020, European Union countries are expected to experience an estimated €164 billion loss in value added tax (VAT) revenue in 2020 due to the effects of the COVID-19 pandemic on the economy.
The considerable 2018 VAT Gap, coupled with forecasts for 2020 – which will be impacted by the coronavirus pandemic – highlights once again the need for a comprehensive reform of EU VAT rules to put an end to VAT fraud, and for increased cooperation between Member States to promote VAT collection while protecting legitimate businesses. The Commission’s recent Fair and Simple Taxation package (July 2020) also details a number of upcoming measures in this area.
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