The European Commission has named Luxembourg as one of the best countries in the EU in terms of value-added tax (VAT) collection in its "VAT Gap" study for the year 2017.
Published today, the study ranked Luxembourg second with a VAT gap rate (the overall difference between expected VAT receipts and the actual amount collected) of 0.7%, compared to the EU average of 11.2%.
Commenting on this ranking, Luxembourg's Minister of Finance Pierre Gramegna stated: "I am delighted with this good result, which shows that Luxembourg has managed to further reduce its VAT gap rate, so I would like to congratulate the Registration Duties, Estates and VAT Authority for its excellent work".
Nevertheless, the report also revealed that EU countries lost a total of €137 billion in VAT in 2017, compared to €7.9 billion in 2016.
