VAT Statistics
Last updated: June 2026 · 7 sourced statistics
Value-added tax funds a huge share of government revenue in 170+ countries — and leaks badly. The European Commission's latest VAT Gap study put uncollected EU VAT at €128 billion for 2023, with compliance ranging from near-perfect in Austria to a ~30% gap in Romania. Closing that gap is the explicit motive behind Europe's e-invoicing mandates.
Key takeaways
- EU member states failed to collect €128 billion in VAT in 2023 (European Commission).
- The compliance gap is 9.5% of total VAT liability EU-wide, ranging from under 1% to ~30% by country.
- More than 170 countries operate a VAT or equivalent GST.
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 |
|---|---|---|---|
| €128B | EU member states failed to collect €128 billion in VAT revenue in 2023, per the European Commission's VAT Gap report published in December 2025. | European Commission VAT Gap Report | 2025 |
| 9.5% | The EU-wide VAT compliance gap equals 9.5% of total VAT liability (European Commission). | European Commission VAT Gap Report | 2025 |
| <1% to ~30% | Country gaps range enormously: under 1% in Austria versus roughly 30% in Romania (European Commission). | European Commission VAT Gap Report | 2025 |
| +€27B | The uncollected total rose from about €101 billion (2022) to €128 billion (2023) — driven by fraud, reporting errors, and administrative weaknesses (European Commission). | European Commission VAT Gap Report | 2025 |
| 50%+ | Beyond compliance, the EU's VAT 'policy gap' — revenue foregone through reduced rates and exemptions — runs above 50% of theoretical maximum collections. | European Commission VAT Gap Report | 2025 |
| 17–27% | EU standard VAT rates span 17% (Luxembourg) to 27% (Hungary); more than 170 countries worldwide operate VAT or GST systems (OECD). | OECD Consumption Tax Trends | 2024 |
| 2030 | Under the EU's ViDA package, structured e-invoicing and digital reporting become the cross-border default from 2030 — the bloc's flagship anti-gap measure. | Council of the EU, ViDA | 2025 |
The statistics
EU member states failed to collect €128 billion in VAT revenue in 2023, per the European Commission's VAT Gap report published in December 2025.
Source:European Commission VAT Gap Report2025
The EU-wide VAT compliance gap equals 9.5% of total VAT liability (European Commission).
Source:European Commission VAT Gap Report2025
Country gaps range enormously: under 1% in Austria versus roughly 30% in Romania (European Commission).
Source:European Commission VAT Gap Report2025
The uncollected total rose from about €101 billion (2022) to €128 billion (2023) — driven by fraud, reporting errors, and administrative weaknesses (European Commission).
Source:European Commission VAT Gap Report2025
Beyond compliance, the EU's VAT 'policy gap' — revenue foregone through reduced rates and exemptions — runs above 50% of theoretical maximum collections.
Source:European Commission VAT Gap Report2025
EU standard VAT rates span 17% (Luxembourg) to 27% (Hungary); more than 170 countries worldwide operate VAT or GST systems (OECD).
Source:OECD Consumption Tax Trends2024
Under the EU's ViDA package, structured e-invoicing and digital reporting become the cross-border default from 2030 — the bloc's flagship anti-gap measure.
Source:Council of the EU, ViDA2025
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 VAT gap mixes fraud, errors, insolvency, and avoidance — e-invoicing addresses only part of it.
- Country gaps vary enormously, so the 9.5% EU average describes no single country.
- The 'policy gap' (revenue foregone via reduced rates) is separate from the compliance gap and far larger.
How we compiled this data
Compiled June 2026 from the European Commission's VAT Gap study (December 2025 edition covering 2023 data), OECD Consumption Tax Trends, and EU ViDA legislative documents.
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 June 2026, 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 VAT gap?
The difference between VAT theoretically owed and VAT actually collected — €128 billion across the EU in 2023, or 9.5% of total liability.
Why does the VAT gap matter for businesses?
It drives policy: mandatory e-invoicing, real-time reporting, and stricter invoice rules all exist primarily to close this gap — and they land as compliance obligations on every VAT-registered business.
Which countries collect VAT best?
Austria and several northern EU states run gaps below a few percent; Romania's ~30% gap is the EU's largest (European Commission).
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