The gap in VAT, i.e. the money lost by the State due to non-collection of VAT, has been on a steady downward trend over the last years.
According to sources, the VAT gap is estimated to register a significant decline to 13% in 2022 from 17.8% in 2021. The goal of the economic staff is to decline below 10% in 2023 and 2024 in order to reach 9%, the average of the European Union, in 2026-2027.
“And as much as tax evasion is limited, as much as the gap in VAT is reduced, as much as you manage and solve large tax or customs frauds that require a specialization, the more revenue you will add to the coffers of the state, so that we can continue with the policy of cutting down on taxes, which we intend to do until at least the end of our government term, in 2027,” Prime Minister Kyriakos Mitsotakis said at the inauguration of the new building of the central service of the Independent Authority for Public Revenue (AADE).
Decisive factors for the reduction of the VAT gap were digital transactions, e-books, the widespread use of POS and a series of other interventions such as:
-The implementation of mandatory electronic invoices.
-The myDATA application for the electronic submission of documents to the AADE for both income and expenses.
-The complete implementation of the digital consignment note.
-The expansion of the electronic payment system to all retail branches.
-Limiting the use of cash over 500 euros.
-The purchase and sale of real estate exclusively through banks.
