VAT revenues recorded a historic high in 2024, according to official data. More specifically, in the 11th month period, revenues exceeded those of the entire 2023, while the year will end with total revenues of over 25 billion euros for the first time in the country’s history.
The detailed budget execution data for the 11th month showed an excess in VAT revenues compared to the revised targets incorporated in the 2025 budget.
Although total tax revenues stood within the revised estimates (60.569 billion euros were collected compared to a target of 60.565 billion euros), VAT exceeded the target of 23.591 billion euros by 46 million euros, despite the de-escalation of prices in motor fuels and heating oil.
High cost of living, the increase in electronic payments, and the continued reduction of the so-called VAT “gap” are variables that – as it turns out – have not exhausted their potential. The hopes that the positive course of Value Added Tax collections will continue in 2025 remain strong and the first “crash test” will be the 4th quarter tax declarations which will be submitted at the end of January, also reflecting the increased transactions in December due to holidays.
However, the margins for revenue growth will be clearly more limited compared to 2024. However, they still exist, as the VAT “gap” is estimated to yield revenues of over 1 billion euros, if reduced, and electronic transactions have room for further growth, breaking upwards the limit of 70 billion euros per year.
The surplus
According to the state budget execution data, a surplus of 4.375 billion euros was recorded in January-November 2024, compared to the target for a surplus of 2.293 billion euros and a deficit of 1.032 billion euros in the corresponding period of 2023.
The primary result on a modified cash basis was a surplus of 12.011 billion euros, compared to a target for a primary surplus of 9.912 billion euros and a primary surplus of 5.826 billion euros for the same period in 2023.
November revenues
More specifically, in November 2024, the total net revenues of the state budget amounted to 5.390 billion euros, up 53 million euros compared to the monthly target.
