EU estimates Irish Vat gap at €1.7bn

Ireland’s top Vat rate of 23% is one of the highest among the 27 EU member states.

Finance Minister Paschal Donohoe has previously questioned the EU's Vat measuring methodology.

The difference between the amount of business transactions liable for Vat and the actual amount of Vat collected in Ireland annually could be as high as €1.68bn, according to the European Commission.

The latest annual estimate of the Vat gap in EU member states — which measures the effectiveness of Vat enforcement and compliance measures — has calculated that 10.6% of potential Vat revenue in 2018 was not collected by the tax authorities in Ireland.