Greece deploys digital tools to tackle €500M fuel smuggling losses

The government is stepping up its fight against fuel smuggling and tax evasion, deploying new digital tools after warnings from the European Commission over persistent revenue losses.

Fuel smuggling alone is estimated to cost the state €500 million annually, largely due to gaps in monitoring fuel input and output. The European Commission raised concerns this summer over delays in implementing tracking systems.

In response, the Finance Ministry is accelerating a series of digital initiatives, including:

Mandatory electronic invoicing

A centralized digital property database

AI-driven business intelligence systems to detect and forecast tax evasion risks

The broader digital transformation is already showing results. According to ministry data, Greece's annual VAT gap has shrunk from €7 billion in 2017 to €3 billion, with projections it will fall to 10% in 2024, down from 13.7% in 2022. The EU average is around 7%.

Officials say these reforms are key to increasing state revenue, improving transparency, and meeting EU compliance standards.