Greece is now at the forefront of the digital transformation of tax administrations in the European Union, according to a new report by the International Monetary Fund (IMF), which attributes the transformation to a series of reforms that began during the years of the memoranda and accelerated after 2019.
The IMF report, titled “How Tax Administration Supported the Recovery of the Greek Economy,” emphasizes that the digitization of tax administration has played a decisive role in reducing tax evasion, increasing public revenue, and improving tax compliance.
Nearly 100% of tax returns and payments are electronic
According to the report, as early as the beginning of 2020, nearly all transactions with the tax authority and customs could be conducted electronically, while the pandemic served as a catalyst for accelerating digitization.
Electronic filing of VAT returns reached 100% in 2022, while for corporate tax returns, the rate had already reached 99.9% by 2021.
At the same time, electronic tax payments rose from 86.6% in 2018 to 99.2% in 2023, with a striking increase from 90.4% in 2021 to 98.8% in 2022.
The IMF notes that from 2018 to 2023, the rates of electronic tax filing in Greece exceeded the average for both the EU and OECD countries
"Plunge" in tax evasion
The report attributes the significant reduction in tax evasion to digital reforms.
According to European Commission data cited by the IMF, the so-called “VAT gap”—that is, uncollected tax—decreased from 30% in 2011 to 9% in 2024.
The IMF describes this reduction as “a significant achievement in curbing non-compliance.”
The following played a key role in reducing tax evasion:
- the myAADE platform,
- the myDATA electronic books,
- pre-filled tax returns,
- as well as the integration of POS and cash registers.
The mandatory transmission of data to myDATA and the online connection of POS terminals to cash registers starting in May 2024 are considered by the IMF to be critical measures for enforcing tax compliance in real time.
The AADE and the “virtuous cycle”
The IMF characterizes the creation of the AADE in 2017 as the most significant tax reform of the 2013–2017 period.
As it notes, the independence of the tax administration has accelerated changes in digitization, risk management, and tax governance.
“The reforms created a virtuous cycle: better tax governance enabled digitization, which improved compliance and boosted public revenues,”the report notes.
According to the IMF, the ratio of tax revenue to GDP rose to 28% in 2025, from 20.5% in 2009.
The next challenge: AI and data analysis
The Fund notes that the next phase of reforms will rely even more on data analysis and artificial intelligence.
The goal, as it states, is:
- strengthening tax risk management,
- further improvement of services for citizens,
- as well as boosting taxpayers’ confidence in the system.
The IMF’s message is that the country’s reform agenda is not over, but the scope—and progress—of Greece’s recovery offers valuable lessons for other countries seeking tax reform.
SOURCE: APE-MPE