Editor’s Blog: Produced in collaboration with the EU Buzz team
VAT (Value Added Tax) is an important revenue source for the Member States of the European Union. VAT is a general consumption tax applicable to most goods and services bought and sold for use or consumption in the EU. It is an indirect tax applied when buyers of goods or services pay value added tax to the sellers, who then transfer these tax receipts to their national revenue authorities. VAT revenues represented between 13% (in Italy) and 28% (in Croatia) of general government revenues in 2019. However, the VAT gap, …