Greek VAT gap shrinks to €3.2 bln in 2021
Greece’s value-added tax gap narrowed to 3.231 billion euros in 2021 from €3.426 billion in 2020, the European Commission said in a report on Tuesday.
Brussels said Greece recorded a 3.2-percentage point decline in the VAT gap, to 17.8% in 2021 from 21% in the previous year.
Commenting on the report, National Economy and Finance Deputy Minister Harry Theoharis said, “It was another fundamental step that proved the progress made in establishing a tax consciousness in Greece, enhancing tax justice and combating tax evasion.”
Theoharis noted that Greece still has a long way to go, “but our will is strong. The government and the ministry will adhere to a plan to implement the necessary reforms that will deal with the chronic ailments of the system and strengthen social cohesion.”
Greece ranks third among EU countries with the largest VAT gap, after Romania (36.7%) and Malta (25.7%).
The Commission data showed that digitalization of tax systems, real time transactions and e-invoicing helped to reduce the VAT gap by €38 billion in one year, from €99.3 billion in 2020 to €60.6 billion in 2021.
The Greek government estimates that the VAT gap has shrunk further to 15% in 2022, with the aim to narrow it to 9% in 2026, offering €2.5 billion in additional revenue from VAT and income tax.
