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VAT Gap - How much VAT is left uncollected in EU countries?

9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.

The table below shows the share of VAT not collected in different EU countries and candidate countries (VAT compliance gap). The information also shows the change from the previous year in percentage points. The information was published in 2025 and applies to 2023.

Country	VAT compliance gap	Change (pp)
Austria	1.0%	-2.0%
Finland	3.0%	+0.9%
Cyprus	3.3%	-3.0%
Portugal	3.6%	-0.5%
Slovenia	4.9%	-3.5%
Sweden	5.3%	+1.8%
Georgia	5.4%	0.0%
Latvia	5.4%	+3.5%
France	5.6%	+0.5%
Netherlands	7.0%	-2.5%
Hungary	7.4%	+5.0%
Spain	7.6%	+3.5%
Croatia	7.7%	-3.7%
Czech Republic	8.0%	-0.2 %
Kosovo	8.1%	-3.4%
Ireland	8.3%	+6.0%
Bulgaria	8.6%	+2.3%
Denmark	8.9%	+0.9%
Germany	9.7%	+3.1%
Estonia	10.3%	+5.1%
Slovakia	10.5%	-1.0%
Greece	11.4%	-1.1%
Belgium	12.3%	+0.6%
Italy	15.0%	+0.6%
Lithuania	15.1%	+2.9%
Poland	16.0%	+4.8%
Ukraine	17.5%
Malta	24.2%	+0.6%
Albania	24.6%	+4.1%
Romania	30.0%	+3.4%
EU	9.5%	+1.6%

The VAT compliance gap in the table above is not the only way to measure the VAT loss. Another measure used is the VAT policy gap, which describes the policy gap. The information box below provides an overview of the terminology in the field.

VAT Gap Terminology

VAT revenue
how much VAT is currently collected

VAT (total tax) liability
how much VAT should be collected if everyone followed the current VAT regulations

VAT compliance gap
VAT compliance gap = VAT total tax liability - VAT revenue. This describes the difference between how much should be collected under the current rules and how much is actually collected. The difference consists of tax evasion, fraud, insolvency, administrative errors or incorrect reporting.

VAT policy gap
This describes the policy choices of the VAT collector, i.e. the effect of reduced VAT rates and VAT exemptions. This is the difference between the theoretical maximum, i.e. if everything could be collected at the general VAT rate, and the VAT liability.
VAT policy gap = VAT rate gap + VAT exemption gap.

VAT rate gap
This is the part of the VAT policy gap that is due to reduced tax rates. This could be eliminated by raising the reduced tax rates to normal. This is therefore entirely actionable.

VAT exemption gap
This is the part of the VAT policy gap that is due to VAT exemptions. Some of this is actionable and some is non-actionable. Most of it is non-actionable, i.e. there are things within the scope of the tax exemption that cannot really be taxed.

Author:

Arkikoodi

Sources and additional information:

https://taxation-customs.ec.europa.eu/taxation/vat/fight-against-vat-fraud/vat-gap_en

Published: 12.1.2026

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