The significant reinforcement of revenue from VAT and transparency in transactions is recorded by the study of the Independent Public Revenue Authority (AADE) on “Evolution of VAT Certificate and electronic payment per branch 2024/2023 ».
The additional VAT revenue reached EUR 2.66 billion in 2024 compared to 2023, of which about 1/3 is attributed to the increase in electronic payments, the implementation of digital invoices and the interconnection of POS with cash with cash
The study was presented by AADE Governor George Pitsilis, in the presence of the Deputy Prime Minister, Kostis Hatzidakis, the Minister of Finance, Kyriakos Pierrakakis and the Deputy Minister of Finance George Kotsiras.
The key conclusions of the research are the following three:
- First, the 2024 VAT certificate details conclude that the full operation of the POS – Cash Machine Interconnection, for all the required debtors, has substantially contributed to the expansion of the taxable base, especially in the tertiary sector. It is noteworthy that, out of the additional € 8.3 billion in electronic payments, 7.5 billion relate to tertiary transactions.
- Secondly, replacing cash by electronic payments has led to the unveiling of undeclared transactions, directly boosting VAT revenue – at least € 500 million – and, in the second year, expected income tax revenue the next year. The highest increase in VAT amounts are recorded by catering services (37.9%), TAXI (32.9%), accommodation (19.7%) and car workshops (19.4%).
- Thirdly, improving the ratio of inputs to outflows, coupled with the increase in VAT and constant collection, substantiates that the actions of the Ministry of National Economy and Finance and AADE deliver measurable results, not only in revenue but also in terms of taxation. At least 1/3 of the annual increase in VAT revenue in the period 2022-2024 is attributed to the improvement of compliance.
View the evolution of the VAT Certificate and Electronic Payments Certificate per branch 2024 – 2023.
Government Vice President Kostis Hatzidakis said: “The study of AADE reflects the very specific and quick steps taken by the government in recent years to reduce tax evasion. We have a significant reduction in VAT lost from state funds from 2018 to 2022, recorded by the European Commission. In addition to 2023 onwards we have an intensity of the government’s efforts on many levels and these results were reflected in the execution of the 2024 budget. There, additional revenue of around € 2 billion came from the growth of the economy, mydata and the interconnection of POS with the cash registers. It was something we proceeded, and few believed that it would have a positive outcome. And yet we said it and we did it! These initiatives undoubtedly have a social color. Thanks to them, the government has reduced 72 different taxes from 2019 onwards. And it can also make various other moves with a positive sign for society, covering various social groups. And it is also something that will be done this year with the Thessaloniki International Exhibition. And we are talking again about new tax cuts and government initiatives, which will meet various social needs, within the context of European budgetary rules and budget and economic strengths.
So I would like to thank and congratulate everyone on the part of the Treasury, who worked for this effort. I am absolutely sure that Kyriakos Pierrakakis and George Kotsiras will continue in that direction. But to congratulate George Pitsilis and the whole team of AADE, because without them all that we will talk about today would not become a reality. I am very pleased because I, for my part, participated in this very positive, I believe, for society initiative, with social justice color, but also with an optimistic color for the course of the economy and the country. “
Finance Minister Kyriakos Pierrakakis noted: “The AADE study on VAT revenue and transparency in transactions in the years 2023 – 2024 is of great value because it reflects the vibrant picture of economic activity in the country. The study substantiates that recent excellent performance in VAT collection are due to the economic development of the country, the digitization of the economy and the utilization of AADE technological tools. Taxation increased by 22 billion euros from 2023 to 2024, increasing the VAT certified by 2.6 billion euros. Thanks to these additional revenue we can more effectively support health, education, infrastructure, every aspect of our common life. Through the electronic pricing systems and by interconnecting the cash registers with POS, AADE is now able to monitor the economy in real time. Our next bet is to enrich this possibility with new tools. “
The Commander of the Independent Public Revenue Authority, George Pitsilis, said: “2024 was the year when the POS interconnection with the cash registers was completed, completing mydata and enhancing transparency in transactions. The progress we record in electronic payments is spectacular. Improving compliance has contributed significantly to public revenue. Particularly impressive are the changes in professional activities where electronic transactions have increased rapidly. The elements we present today show that the transition to the digital age is not just a trend, but a reality that enhances transparency and restricts tax evasion. The overall picture is clear: the electronicization of transactions and the expansion of the mydata digital ecosystem by interconnecting the cash with POSs change the landscape in tax compliance. The measures we are implementing are fruitful. We continue dynamically, ensuring a fair and effective tax system. “