Brussels, Sept. 21 (Lusa) — European Union member states lost almost Euro150 billion in Value-Added Tax (VAT) revenues in 2016, with Portugal losing around Euro1.8 billion, the European Commission said on Friday.
According to a new report published by the commission, in 2016, the VAT gap — which shows the difference between the expected VAT revenue and the amount actually collected — in nominal terms saw a drop of Euro10.5 billion compared to 2015, a drop to 12.3% in total VAT revenues.
“Member states have been improving VAT collection throughout the EU. This must be recognised and commended. But a loss of Euro150 billion per year for national budgets remains unacceptable, especially when Euro50 billion of this is lining the pockets of criminals, fraudsters and possibly even terrorists,” Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, said.
The individual performance of member states varied significantly, according to Brussels, with the VAT gap decreasing in 22 member states, including Portugal which saw the VAT gap drop for the third consecutive year.
The VAT gap increased in six countries, including the United Kingdom and France.
Portugal’s VAT gap, of around Euro1,784 million represented around 10% of the total revenue forecast, in line with the EU average, a drop compared to 13% in 2015 when the national coffers lost over Euro2.2 billion.
ACC // CA
Lusa