On 7 April 2022, the European Commission published its Screening and Diagnostic Report of Value-Added Tax (VAT) Administration in the EU containing a series of recommendations to help Member States improve their VAT revenue collection, control procedures and processes.
Fair and efficient taxation is crucial as the EU and the global community seek to recover from the fallout of the COVID-19 crisis. VAT, in particular, accounts for around 7% of EU GDP and is one of the biggest revenue sources for Member States.
Nevertheless, lost VAT revenues – €134 billion in 2019 – are still a major concern. By providing a snapshot of current VAT practices in EU countries, today’s report highlights experiences and best practices in dealing with administrative issues. Today’s publication recommends digitalising VAT registration and administration, thereby making life less burdensome for businesses.
Moreover, the report highlights strategies that tax administrations could adopt in their internal organisation and interaction with taxpayers that would improve processes for both tax authorities and businesses.
The Commission submits every three years a report to the Parliament and the Council on the procedures applied by Member States for registering taxable persons and determining and collecting VAT, as well as on their VAT control systems, as requested by Article 12 of Council Regulation 1553/89.
Read the report here.
More information on the EU’s work to improve VAT administration is available here.
- Publication date
- 7 April 2022
- Directorate-General for Taxation and Customs Union