VAT, Italy first in Europe for evasion: the state loses over 30 billion euros

VAT, Italy first in Europe for evasion: the state loses over 30 billion euros
VAT, Italy first in Europe for evasion: the state loses over 30 billion euros

In 2019 Italy is confirmed first in the European Union for VAT evasion in face value, with losses for the state of 30.1 billion euros, while it is fifth for the largest gap between expected and collected revenues with 21.3%, behind only Romania (34.9%), Greece (25.8%), Malta (23.5%) and Lithuania (21, 4%). This is what emerges from the EU Commission’s VAT report which underlines how the Union has lost 134 billion in 2019, an improvement compared to 2018 but with the unknown of the extent of the Covid-19 pandemic on VAT revenues for 2020.

Compared to 2018, however, in 2019 Italy showed an improvement: the gap between expected revenue and actual revenue decreased from 24.5% to 21.3%, while the economic damage went from 35.4 billion to 30.1 billion. A figure that, in absolute terms, does however remain our country black jersey in Europe for evasion and fraud, followed at a distance by Germany with losses of 23.4 billion euros (but a gap of 8.8%). The progressive downward trend also continues in Europe: in 2019 losses decreased by almost € 6.6 billion to € 134 billion, “a clear improvement compared to the decrease of € 4.6 billion the previous year”, highlights Brussels, however warning that although the gap between forecasted and actual revenues improved between 2015 and 2019, the full scope of the Covid-19 pandemic on consumer demand and therefore on VAT receipts in 2020 remains unknown.

“Despite the positive trend recorded in recent years, the VAT gap remains one of main concerns, especially in view of the immense investment needs that our Member States will have to face in the coming years “, warned the EU Commissioner for the Economy, Paolo Gentiloni, noting that “this year’s figures correspond to a loss of over 4,000 euros per second. These are unacceptable losses on national budgets and mean that ordinary people and businesses are left to collect the deficit through other taxes to pay for vital public services. We must make a joint effort to crack down on VAT fraud, a serious crime that steals money from the pockets of consumers, undermines our welfare systems and impoverishes the public coffers “.

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VAT Italy Europe evasion state loses billion euros

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