Plan for VAT revenue increase by €1.4 bln

The Independent Authority for Public Revenue (AADE) has set a target of narrowing the value-added tax gap to the European Union average and slashing tax evasion of individuals carrying out business activities by 40% by 2029.

In its 2025-29 strategic plan, which was published on Friday, the tax administration also outlined it aim for an automated tax refund of more than 95% within 30 days, always for 2029.

Reducing the VAT gap to the EU average implies an increase in VAT tax revenue by approximately 1.4 billion euros. According to the latest EU data, for 2022, the VAT gap (of theoretically expected revenues) in Greece was 13.7%, while in the EU-27 it was 6.99%.

This gap in Greece corresponds to €2.95 billion, which means that reducing it almost by half corresponds to an additional revenue of €1.4 billion according to kathimerini.com //Eirini Chrysolora

Other key objectives laid out in the strategic plan, always with a horizon of 2029, include the following:

• Doubling the collectability of actual overdue debts.

• Stemming the loss of revenues from smuggling.

• Increasing the timely submission of income tax returns to 96% and VAT to 99%.

• Raising timely payments to 90%.

• Completion of 95% of digital requests from business partners within 24 hours on average and within three working days on average for other requests.

• Clearance of declarations in one hour at a rate of over 90% for imports and over 95% for exports.

• Electronic end-to-end procedures for servicing the tax administration at a rate of 80%.

• Increasing the share of AADE official who deal exclusively with auditing to over 30%.

• Training 100% of the staff in the new systems and technologies of its subject.

Interestingly, the goals even include the “gradual reduction of the AADE corruption perception index.”

The plan is based on five objectives: Establishing a framework for easy compliance; focusing on citizens, businesses and society as a whole; addressing any risk of non-compliance and ensuring public revenues; achieving high levels of performance through data technology and human resources; and pursuing excellence at all levels of the authority’s operation.

Source: pagenews.gr