VAT Statistics
Last updated: 2026-10-28 · 13 sourced statistics
VAT is one of the largest taxes governments collect, and also one of the leakiest. The European Commission's 2025 VAT gap report estimates that EU Member States failed to collect €128 billion of VAT in 2023, 9.5% of the VAT owed, with gaps ranging from 1.0% in Austria to 30.0% in Romania. In the UK, HMRC collected £171 billion of VAT in 2024 to 2025 from a VAT population of about 2.3 million traders, and estimates its own VAT gap at 6.6%. Across the world, VAT or GST is in place in 174 countries, and the OECD average standard rate was 19.3% on 1 January 2024. For businesses that invoice, these numbers explain why VAT invoice rules are tightening, from the EU's digital reporting for cross-border sales from 1 July 2030 to domestic e-invoicing mandates. Every figure below links to the publication that states it.
Key takeaways
- The EU VAT compliance gap was €128 billion in 2023, or 9.5% of VAT total tax liability, down from 11.1% in 2019 (European Commission, December 2025).
- Gaps differ widely by country: 1.0% in Austria against 30.0% in Romania, the highest in the EU.
- EU standard VAT rates run from 17% in Luxembourg to 27% in Hungary, above the EU minimum of 15%.
- In the UK, traders with turnover above £10 million paid 75% of net home VAT liability in 2024 to 2025, while 234,000 businesses registered for VAT during the year.
- From 1 July 2030, cross-border business-to-business sales in the EU fall under ViDA digital reporting requirements.
At a glance.
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| €128bn | The EU VAT compliance gap amounted to €128 billion in 2023, or 9.5% of the VAT total tax liability. | European Commission, VAT gap in Europe: report 2025 (published 11 December 2025) | 2025 |
| 11.1% to 9.5% | Between 2019 and 2023 the EU VAT compliance gap decreased from 11.1% to 9.5% of VAT total tax liability. | European Commission, VAT gap in Europe: report 2025 | 2025 |
| 1.0% vs 30.0% | Austria had the smallest VAT compliance gap among EU Member States in 2023, at 1.0%, and Romania the largest, at 30.0% (Luxembourg's estimates are excluded from the ranking). | European Commission, VAT gap in Europe: report 2025 | 2025 |
| 50.5% | The EU VAT policy gap, revenue forgone through reduced rates and exemptions compared with an ideal VAT, increased slightly from 49.4% in 2019 to 50.5% in 2023. | European Commission, VAT gap in Europe: report 2025 | 2025 |
| 17% to 27% | EU standard VAT rates range from 17% in Luxembourg to 27% in Hungary; the standard rate in any Member State cannot be less than 15%. | European Union, Your Europe: VAT rules and rates (last checked 13 July 2026) | 2026 |
| 174 | VAT or GST has been implemented in 174 countries worldwide, and VAT/GST revenues account for more than 20% of total tax revenue on average in OECD countries. | OECD, Consumption tax trends (topic page) | 2025 |
| 19.3% | The unweighted OECD average standard VAT rate rose to 19.3% on 1 January 2024, equal to the 2017 record; the average for the 22 OECD countries in the EU is 21.9%. | OECD, Consumption Tax Trends 2024, chapter 2: Value-added taxes, main design features and trends | 2024 |
| 42% | The unweighted average VAT revenue ratio across OECD countries was 0.58 in 2022, which suggests that on average an estimated 42% of theoretical potential VAT revenue is not collected; the OECD says the ratio combines the effect of exemptions and reduced rates, fraud, evasion and tax planning. | OECD, Consumption Tax Trends 2024, chapter 2: Value-added taxes, main design features and trends | 2024 |
| £171bn | Total UK VAT receipts in the financial year 2024 to 2025 increased by 2% to £171 billion: £162 billion of home VAT and £9 billion of non-postponed import VAT. | HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025) | 2025 |
| 2.33M | The UK VAT population in 2024 to 2025 was 2,330,400 traders, with 234,000 new registrations and 218,000 de-registrations during the year; the registration threshold was £90,000. | HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025) | 2025 |
| 75% | UK traders with annual turnover above £10 million paid 75% of total net home VAT liability in 2024 to 2025 (£133 billion of £177 billion). | HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025) | 2025 |
| 6.6% | HMRC estimates the UK VAT gap at 6.6% in 2024 to 2025, down from 14.1% in 2005 to 2006. | HM Revenue and Customs, Measuring tax gaps 2026 edition: tax gap estimates for 2024 to 2025 | 2026 |
| 1 July 2030 | Under the EU's VAT in the Digital Age package, adopted on 11 March 2025, digital reporting requirements apply to cross-border business-to-business transactions from 1 July 2030. | European Commission, VAT in the Digital Age (ViDA) | 2025 |
The statistics
The EU VAT compliance gap amounted to €128 billion in 2023, or 9.5% of the VAT total tax liability.
Source:European Commission, VAT gap in Europe: report 2025 (published 11 December 2025)2025
Between 2019 and 2023 the EU VAT compliance gap decreased from 11.1% to 9.5% of VAT total tax liability.
Source:European Commission, VAT gap in Europe: report 20252025
Austria had the smallest VAT compliance gap among EU Member States in 2023, at 1.0%, and Romania the largest, at 30.0% (Luxembourg's estimates are excluded from the ranking).
Source:European Commission, VAT gap in Europe: report 20252025
The EU VAT policy gap, revenue forgone through reduced rates and exemptions compared with an ideal VAT, increased slightly from 49.4% in 2019 to 50.5% in 2023.
Source:European Commission, VAT gap in Europe: report 20252025
EU standard VAT rates range from 17% in Luxembourg to 27% in Hungary; the standard rate in any Member State cannot be less than 15%.
Source:European Union, Your Europe: VAT rules and rates (last checked 13 July 2026)2026
VAT or GST has been implemented in 174 countries worldwide, and VAT/GST revenues account for more than 20% of total tax revenue on average in OECD countries.
Source:OECD, Consumption tax trends (topic page)2025
The unweighted OECD average standard VAT rate rose to 19.3% on 1 January 2024, equal to the 2017 record; the average for the 22 OECD countries in the EU is 21.9%.
Source:OECD, Consumption Tax Trends 2024, chapter 2: Value-added taxes, main design features and trends2024
The unweighted average VAT revenue ratio across OECD countries was 0.58 in 2022, which suggests that on average an estimated 42% of theoretical potential VAT revenue is not collected; the OECD says the ratio combines the effect of exemptions and reduced rates, fraud, evasion and tax planning.
Source:OECD, Consumption Tax Trends 2024, chapter 2: Value-added taxes, main design features and trends2024
Total UK VAT receipts in the financial year 2024 to 2025 increased by 2% to £171 billion: £162 billion of home VAT and £9 billion of non-postponed import VAT.
Source:HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025)2025
The UK VAT population in 2024 to 2025 was 2,330,400 traders, with 234,000 new registrations and 218,000 de-registrations during the year; the registration threshold was £90,000.
Source:HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025)2025
UK traders with annual turnover above £10 million paid 75% of total net home VAT liability in 2024 to 2025 (£133 billion of £177 billion).
Source:HM Revenue and Customs, Annual UK VAT statistics 2024 to 2025 commentary (3 December 2025)2025
HMRC estimates the UK VAT gap at 6.6% in 2024 to 2025, down from 14.1% in 2005 to 2006.
Source:HM Revenue and Customs, Measuring tax gaps 2026 edition: tax gap estimates for 2024 to 20252026
Under the EU's VAT in the Digital Age package, adopted on 11 March 2025, digital reporting requirements apply to cross-border business-to-business transactions from 1 July 2030.
Source:European Commission, VAT in the Digital Age (ViDA)2025
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- The EU VAT gap is an estimate of VAT that should have been collected but was not, covering fraud, evasion, errors, insolvencies and avoidance together. The European Commission excludes Luxembourg from its country rankings because its estimates fall outside plausible ranges.
- The EU 'policy gap' (revenue forgone through reduced rates and exemptions) and the 'compliance gap' measure different things and should not be added.
- HMRC's VAT gap and the European Commission's VAT gap use different methods and years, so the UK's 6.6% and the EU's 9.5% are not a like-for-like comparison. HMRC's 2024 to 2025 estimate is a provisional projection.
- HMRC's VAT population counts traders on its VAT register during the year; it will not match ONS counts of registered businesses.
- VAT rates change during the year. The rates here were checked on the EU's Your Europe page (last checked by the EU on 13 July 2026) and the OECD figures describe rates on 1 January 2024. Confirm the current rate with the tax authority before you invoice.
- This page is general information, not tax advice.
How we compiled this data
Reviewed on 2026-10-28. Every figure was re-read on the review date in the primary publication: the European Commission's VAT gap page for the VAT gap in Europe report 2025 (published 11 December 2025, data for 2023); the EU's Your Europe VAT rates table (last checked by the EU on 13 July 2026); OECD Consumption Tax Trends 2024 (data at 1 January 2024) and the OECD consumption tax topic page, both read through Internet Archive copies because the OECD site blocks automated access; HMRC's annual UK VAT statistics for 2024 to 2025 (3 December 2025); HMRC's Measuring tax gaps 2026 edition (23 June 2026); and the Commission's ViDA page. We corrected the previous version's '170+ countries' to the OECD's 174, replaced 'under 1%' for Austria with the reported 1.0%, removed a '+€27B' change from 2022 that the Commission's page does not state, and replaced the 'above 50%' policy gap with the reported 50.5%.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in 2026-10-28, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
What is the EU VAT gap?
The difference between the VAT that should have been collected and the VAT actually collected. The European Commission estimates it at €128 billion for 2023, or 9.5% of VAT total tax liability, down from 11.1% in 2019.
Which EU country has the highest VAT rate?
Hungary, at 27%. Luxembourg has the lowest standard rate, at 17%. EU rules say no Member State's standard rate can be below 15%. Reduced rates for some goods and services are lower and vary by country.
How much VAT does the UK collect?
HMRC collected £171 billion of VAT in 2024 to 2025, up 2% on the year: £162 billion of home VAT and £9 billion of import VAT. Traders with turnover above £10 million paid 75% of net home VAT liability.
How many businesses are VAT registered in the UK?
HMRC's VAT population was 2,330,400 traders in 2024 to 2025, with 234,000 new registrations and 218,000 de-registrations during the year. The registration threshold in that year was £90,000 of taxable turnover.
How many countries have VAT?
According to the OECD, VAT or GST has been implemented in 174 countries. The unweighted OECD average standard rate was 19.3% on 1 January 2024.
Why does the VAT gap matter for invoicing?
Because invoice data is how tax authorities check VAT. Rules aimed at closing the gap, such as the EU's ViDA digital reporting for cross-border B2B sales from 1 July 2030 and national e-invoicing mandates, change what a VAT invoice must contain and how it is sent.
Put these figures to use
- Invoice tax compliance by country: What VAT, GST and sales tax invoices must show in the UK, EU and other countries, with e-invoicing dates.
- VAT vs GST: what is the difference?: Rates, registration thresholds and invoice rules compared across 8 countries, with official sources.
- Tax invoice vs regular invoice: What a tax invoice must show so a VAT- or GST-registered buyer can reclaim tax, in the UK, Australia, NZ and US.
- Taxes hub: Guides on sales tax, VAT and tax on invoices.
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