Greece's VAT gap, the share of value-added tax that should be collected but is not, fell below 10% for the first time in 2024, according to preliminary estimates, Finance Minister Kyriakos Pierrakakis has said.
"Every euro we recover from tax evasion is a euro we can return to citizens," Mr. Pierrakakis said after meeting in Athens with Wopke Hoekstra, the European Union's commissioner for climate and clean growth, who also oversees EU tax policy.
Greece had one of Europe's widest VAT gaps for years. Greek tax officials say it fell from 29% in 2017 to 11.4% in 2023.
According to the European Commission's annual tax gap report, that was the largest reduction of any EU country from 2019 to 2023.
Mr. Pierrakakis credited the digitization of tax collection, including a real-time invoicing system, links between card terminals and cash registers, and electronic invoicing.
The figures come as the government faces criticism after police, not tax inspectors, uncovered two major alleged tax evasion schemes at food chains.
Mr. Hoekstra, a former Dutch finance minister, praised Athens.
"We truly admire the way the Greek government is managing the economy, promoting innovation and playing a leading role in Europe, particularly in managing public debt," he said. He also noted that Greece is now a net exporter of renewable energy.
The two officials discussed energy prices, climate policy and investment. Mr. Pierrakakis said Greece's nearly 4.8 billion-euro ($5.5 billion) climate plan will fund home energy upgrades, social housing and greener transport.
Greece will hold the EU's rotating presidency in the second half of 2027.