Greece has made significant progress in reducing the VAT gap, according to an announcement by the Independent Authority for Public Revenue (AADE).
Since its launch in 2017, AADE has embarked on an extensive reform program, which has significantly improved the efficiency of the tax administration.
In 2017, the VAT gap – according to estimates in the European Commission’s report at the time – stood at 29%. For 2023, the VAT gap is estimated at 11.4%, recording an impressive 61% reduction that reflects the continuous interventions and upgrades in the VAT collection and control process.
That 17.6 percentage-point reduction over the 2017-2023 period is the largest among EU member-states, confirming a significant improvement in tax compliance.
Over the 2022-2023 period, Greece was among the nine member-states that achieved a further reduction in the VAT gap, registering the sixth largest annual decrease (1.1%), while the EU average increased by 1.6%.
Regarding the VAT gap attributed to fraud by missing traders, Greece ranks among the four member-states with the lowest VAT gap, per the Commission.
The downward trend of the VAT gap in Greece continues, with preliminary estimates for 2024 showing a further drop to 9%.