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Significant reduction of the VAT gap in Greece | TheGreekDeal.com
Giorgos Pitsilis (AADE)
Significant reduction of the VAT gap in Greece
In 2022, the total VAT revenue was €18.621 billion in Greece. The VAT compliance gap was estimated at €2,959 million, or 13.7% of the total VAT tax liability (VTTL), a decrease of 3.8 percentage points compared to 2021.
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Giorgos Pitsilis, Head, AADE

In 2022, the total VAT revenue was €18.621 billion in Greece. The VAT compliance gap was estimated at €2,959 billion, or 13.7% of the total VAT tax liability (VTTL), a decrease of 3.8 percentage points compared to 2021.

With an EU VAT compliance gap of around 7%, Greece ranked 23rd among EU Member States. Between 2018 and 2022, the VAT compliance gap decreased from 25.4% to 13.7%.

As stated in a statement by the ΑΑDE, a significant reduction was recorded for another year, in the VAT gap in Greece. As it points out, based on official European Commission data published today for 2022—when the latest data are available—the VAT gap fell to 13.7%, from 17.5% in 2021. It has thus fallen by 21.7% in one year. It is worth noting that in 2017, the year of the establishment of the Independent Public Revenue Authority, the VAT gap in our country was 29.1%, so that within 5 years the VAT gap has decreased by 53%. At the same time, Greece is among the 4 countries with the lowest VAT gap from "disappearing" traders, with it ranging from 1.0% to 2.0%.

The Governor of the Independent Public Revenue Authority, George Pitsilis, made the following statement: "The continued reduction of the VAT gap, combined with the reduction of the phenomenon of missing traders, as officially announced by the European Commission, proves that our efforts to curb tax evasion are paying off. The use of artificial intelligence, the extension of digitalisation to the entire control process, the centralisation of services, and a more targeted approach to controls have raised the level and speed of the process, reducing the amount of undeclared taxable material. Above all, these figures mean that we need to further intensify our efforts to reduce tax evasion, for the benefit of all prudent citizens and businesses, thus enhancing healthy competition and social justice."

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