| Characteristic | Share of the VAT gap |
|---|---|
| - | - |
| - | - |
| - | - |
The chart is not accessible to screen readers. Please switch to the table view to access the data.
September 2019
Luxembourg
2017
The source sates the following about the policy gap, rate gap and the exemption gap:
The policy gap is an indicator of the additional VAT revenue that a MS could theoretically (i.e. in the case of perfect tax compliance) generate if it applied a uniform VAT rate on all goods and services.
The rate gap is defined as the difference between the VTTL and what would be obtained in a counterfactual situation, in which the standard rate, instead of the reduced, parking, and zero rates, is applied to final consumption. Thus, the rate gap captures the loss in revenue that a particular country incurs by adopting multiple VAT rates instead of a single standard rate.
The exemption gap is defined as the difference between the VTTL and what would be obtained in a counterfactual situation, in which the standard rate is applied to exempt products and services, and no restriction of the right to deduct applies.
