Greece closes in on EU average for VAT gap
Greece’s VAT gap is estimated to have fallen below 9% in 2025, bringing the country close to the European Union average, according to the latest estimates.
The VAT gap measures the difference between the amount of VAT the state is expected to collect and the amount it actually receives.
Digital tools strengthen tax compliance
The decline in VAT nonpayment has also been reflected in higher-than-expected tax revenues, with recent measures helping bring previously undeclared economic activity into the official economy.
According to the International Monetary Fund, the expansion of myDATA, the mandatory use of point-of-sale terminals and their connection with cash registers, as well as the pre-filling of tax information, have contributed to improved tax compliance.
More activity moves into the official economy
Greek tax authorities have increasingly relied on digital systems to monitor transactions and improve the accuracy of tax declarations.
The combination of these measures has reduced opportunities for VAT nonpayment and increased the amount of economic activity recorded through the formal tax system.
The trend marks a significant change from previous years, when a larger share of economic activity remained outside the official economy and was not fully reflected in tax revenues.
Source:Kathimerini
