MADRID -- According to Brussels in a study published last week by the European Commission, Spain lost €12,400 million (that's over 12 billion!) in IVA (VAT) income -- a full 18% of what the national coffers should have received. This is caused mainly by tax evasion, but also by company bankruptcies, statistical errors and tax avoidance. Nevertheless, the difference is nearly 4% lower than last year. The EU in total, did not ingress some €177 billion through fraud or simply unrecovered. This is 16% of the income it had forecast.//Since 2012, the countries registering lower VAT loss levels were The Netherlands (at 5%), Finland (5%) and Luxembourg (6%). The biggest gaps between projected income and the reality were registered in Romania (44%), Slovakia (39%) and Lithuania (36%). Among the EU's largest members, the VAT gap: Germany (10%), France (15%) Italy (33%) and the UK (10%). The European Commission is presently working on a 'basic reform' of the VAT system to give it "more solidity and efficiency and to reduce its vulnerability against fraud," according to Algirdas Semeta, the Commissioner for Fiscal matters.
