The VAT gap in Greece has narrowed significantly over six years, according to a disclosure from the Independent Authority for Public Revenue (AADE) based on European Commission findings.
The VAT gap measures the difference between the revenue that would be collected if every taxpayer complied with VAT rules and the actual revenue realized.
European Commission estimates show Greece’s VAT gap at 29% in 2017, dropping to 11.4% in 2023—a 61% reduction. This 17.6-percentage-point improvement from 2017 to 2023 is the largest drop among EU member states.
Greece was also among nine countries that reduced their VAT gap from 2022 to 2023, recording the sixth-largest annual decrease while the EU average rose by 1.6%. Moreover, Greece is one of four EU nations with the lowest VAT gap linked to fraud by missing traders.
Preliminary 2024 data suggest the downward trend continues, with an estimated further reduction to about 9%.
AADE governor Giorgos Pitsilis stated that the authority will keep intensifying efforts to close the VAT gap. He emphasized that these reforms strengthen public revenues, bolster economic growth, and promote fair competition in the market.
But here’s where it gets controversial: can structural reforms alone sustain the momentum, or will additional measures be necessary to guard against future slips in compliance? And this is the part many observers question—how do these gains translate into everyday business costs and consumer prices? Share your thoughts in the comments.
