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Studies made for EU reveal that the VAT Gap (difference between theoretical VAT receipts and actual payments) exceeds 100BN€ every year since 2000 (118,8bn€ in 2009). All of this is not fraud or loopholes - there can be legal exceptions. In any case it is
our money - something we tax payers should be interested in getting paid (to get lower salary taxes etc).
The gap varies between 1% (Luxembourg) and 30% (Greece).
The most efficient way of getting the fraudulent and loophole parts under control is to migrate from paper based invoicing to e-invoicing and collect the VAT in connection with invoice payments (split payment as described in earlier posts here).
Chairman/Founding member, board member
Transmeri, Demos, Real Time Economy Program,MyData
04 Nov 2008
This post is from a series of posts in the group:
A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.
Anders La Cour