Greece is at the forefront of the digital transition of tax administrations in the European Union following a series of reforms that began gradually since 2010, when it entered the memorandum of understanding, only to accelerate from 2018, resulting in a reduction in tax evasion and an increase in public revenues, according to a report by the International Monetary Fund.

The report, entitled: “How the Tax Administration has supported the recovery of the Greek economy”, notes that the digital transformation of the tax system took place in the context of similar policies implemented more broadly for the public sector and accelerated after 2019.

In early 2020, almost all transactions with tax and customs could be conducted electronically, while the coronavirus pandemic acted as a catalyst for further digitisation of the system.

Electronic filing of tax returns reached 100% for VAT returns in 2022 and 99.9% for corporate tax returns as early as 2021.

From 2018 to 2023, e-filing rates for corporate and personal income tax and VAT were higher than both the European average and the OECD average, with personal filing rates significantly higher than both of these groups of countries, according to the report.

Electronic tax payment also increased significantly in Greece, from 86.6% in 2018 to 99.2% in 2023, with a particularly significant increase between 2021 (90.4%) and 2022 (98.8%)

The policies implemented and reforms have resulted in a large reduction in tax evasion. The so-called VAT gap – the percentage of VAT due that is not collected – has fallen from 30% in 2011 to 9% in 2024, according to an analysis by the European Commission, representing “a significant achievement in reducing non-compliance.”

The report notes the launch of the unified digital platform myAADE in September 2021, which replaced the previous myTAXISnet platform, providing taxpayers with full access to all digital services of the AADE, including tax returns, payment arrangements, property and car tax and e-books (myDATA). It also notes that all businesses are required to transfer their accounting data to the myDATA platform, a change that has helped reduce tax evasion.

The pre-filled VAT and business tax returns have also contributed to taxpayers’ compliance through the system. Pre-completion of VAT returns began in December 2022, based on the transaction data entered in myDATA, and from January 2025, no discrepancies are allowed between the revenue and expenditure data declared by businesses.

The mandatory use of POS by businesses and their connection to cash registers from May 2024 completed the move towards real-time compliance.

The creation of the AADE, which became operational on 1 January 2017, was the most significant reform of the 2013-2017 period. “This reform fundamentally changed the incentives and authority in decision making, enabling successive advances in reform regarding staffing, risk management and digitisation. It was a decisive move towards greater autonomy for the tax administration, aiming to shield operational decisions from political interference and strengthen governance,” the report said.

“Overall, Greece’s reforms have created a virtuous circle: better tax governance has enabled digitisation, which in turn has improved compliance. Higher and more stable revenues have strengthened public confidence and the country’s fiscal credibility.”

By 2025, Greece’s tax revenue-to-GDP ratio had risen to 28% from 20.5% in 2009. “While revenue growth also reflects broader economic and policy shifts, improvements in tax administration have played a central role by broadening the tax base, strengthening enforcement, and increasing confidence in the system,”

The next challenge, it says, is to make recent gains resilient – by incorporating new ways of working into day-to-day processes, using data analytics and artificial intelligence to manage compliance risks, further improving services and taxpayer confidence, and ensuring that skills and staff keep pace with rapid technological change.

The IMF’s message is that “the reform agenda is not over, but the extent – and evolution – of Greece’s recovery offers valuable lessons for other countries pursuing tax reform.”