Blog article
See all stories ยป

118,8bn euros lost in 2009

From EU Green Paper on VAT:

 

"The current collection model brings with it a VAT Gap due to e.g. VAT fraud, insolvencies, mistakes by the taxable persons in the VAT return and VAT avoidance schemes. Desk research shows that the VAT Gap for 2009 can be cautiously estimated at 6,9% of GDP and 12% of total VAT liability in the EU-27. This means that, in the EU-27, a total of EUR 118,8 billion has according to those estimates not been collected by the tax authorities in 2009."

 

And it is our money - taxpayer's money. So we should see to it that it is collected (taxes can then be lowered) and that the collection is made automatic - cost efficient for enterprises and tax authorities:

"The complexity in the VAT rules results in administrative burdens for businesses. Dealing with VAT accounts for almost 60% of the total burden measured for 13 priority areas identified under the Better Regulation Agenda. According to business, this is making the EU a less attractive place to invest."

5568

Comments: (0)

Bo Harald

Bo Harald

Chairman/Founding member, board member

Transmeri, Demos, Real Time Economy Program,MyData

Member since

04 Nov 2008

Location

Helsinki Region

Blog posts

402

Comments

287

More from Bo

Blog post
After hours

Entering 2020

Blog post
Fintech

Speech today

This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


See all