A significant decrease of 32.3% was recorded in deficit VAT in Hellas in 2020 compared to 2019, according to an EU study. In particular, in 2019, our country was at the very bottom, along with Romania and Malta, recording the largest VAT losses (“VAT gap”), while in 2020 the situation is changing and from the last positions in first place in terms of VAT reduction is Greece. evasion along with Germany, Hungary and the Netherlands.

High-ranking official of the Ministry of Finance refers to “K” that the reduction in the “VAT gap”, i.e. the difference between expected and actual VAT receipts, is not temporary and is the result of measures taken to curb tax evasion, coupled with increased use of cards during the pandemic, a situation that continues and today. Of course, at the same time, entire sectors of the economy that usually lead in tax evasion, such as catering, etc., were not working due to the pandemic.

The same executive says the numbers will show further declines in 2021 as measures and new digital tools help further curb tax evasion. According to the first estimates and the EU report, the “VAT deficit” will decrease in 2021 to 2.436 billion euros.

According to the EU, the “VAT deficit” from 4.7 billion euros in 2019 decreased in 2020 to 3.178 billion euros. Greece is the country with the 4th largest VAT deficit reduction in the European Union in 2020. It shows a decrease in the VAT deficit by 3.7 percentage points, i.e. to 19.7% of VTTL (theoretical expected return at full compliance) in 2020, compared to 23.4% in 2019.

The same sources of the Ministry of Finance state that in 2020 an important role in reducing the “VAT gap” was played by an increase in the limit of electronic receipts, which reached 30% of declared income, and a significant increase in electronic transactions. In particular, according to the Ministry of Finance, the volume of electronic transactions (purchases by cards or other electronic means) reached 40.6 billion euros, while in 2020 it was 44.7 billion euros.

VAT losses decreased to 3.2 billion in 2021 from 6 billion in 2017.

Of the EUR 3.178 billion “VAT deficit”, part is due to VAT exemptions and reduced rates (worth about EUR 800 million), while the rest is due to fraud, tax evasion and bankruptcies.

The “VAT gap” from €6 billion in 2017 narrowed to €3.178 billion in 2020, and the numbers are expected to show a further reduction of 5.7 percentage points in 2021.

“This is an important development with a direct and significant impact on government revenues, on increasing tax awareness, on improving the competitiveness of businesses, on strengthening tax equity and social cohesion and, above all, on creating conditions for an even lower overall tax burden. citizens,” said Finance Minister Christos Staikouras.

The development, the minister added, “testifies to the effectiveness of the economic and tax policies pursued in recent years, demonstrating the significant progress made – in an unfavorable international environment – by our country in improving important indicators of its economy.”

Overall, the EU VAT deficit in 2020 was €93 billion, or 9.1% of total expected VAT revenue. This decrease is due to an increase in VAT compliance in the wake of government support measures to combat the pandemic. However, according to the EU report, the VAT deficit clearly remains a major problem at a time when governments need stable revenues to cope with today’s economic uncertainty. In 2020, Romania recorded the highest “VAT deficit” where 35.7% of revenue was lost, followed by Malta (24.1%) and Italy (20.8%). The smallest gaps were recorded in Finland (1.3%), Estonia (1.8%) and Sweden (2%). In absolute terms, Italy (€26.2 billion) and France (€13.9 billion) have the highest VAT compliance gaps.

The “VAT loophole” has been reduced in 20 EU member states. The most significant reductions occurred in Hungary, Germany and the Netherlands. In addition to Germany and the Netherlands, Spain and Latvia managed to limit the loss of VAT revenue to less than 5% of VAT due. On the other hand, the largest increase in the VAT gap was observed in Croatia (+6 percentage points) and Cyprus (+5 percentage points).

New electronic weapon of the tax inspectorate

From 40 billion euros in 2019, the volume of electronic transactions is expected to reach 65 billion euros this year, the Ministry of Finance says, noting that this development will further reduce tax evasion. At the same time, e-books, electronic transmission of receipts by retailers, and interconnection of cash registers with POS terminals are expected to greatly contribute to the reduction of tax evasion. At the same time, appodixi, an online application with more than 140,000 users, works as a deterrent in terms of not issuing receipts, as well as issuing fake receipts.