Falling VAT Gap Shows Tax Reforms Are Working, EU Official Says

European Union nations are collecting more taxes and preventing more tax dodging, despite a decision-making system that makes it hard to agree new tax rules, the EU’s top tax official said Wednesday.

The EU value-added tax gap — the shortfall in the amount collected compared to expectations — has halved, said EU economy commissioner Paolo Gentiloni, speaking at the EU Tax Symposium.

The gap was 61 billion in 2021 compared to 123 billion euros in 2018.

“The global and European efforts against tax evasion and tax avoidance are bearing fruit,” in particular because authorities are ...