Greece's tax authority has identified approximately 1,400 businesses that filed zero VAT returns while maintaining active commercial operations, using real-time digital cross-checks that officials say are fundamentally transforming the country's approach to tax enforcement.
The Independent Authority for Public Revenue, known by its Greek acronym AADE, detected the discrepancies through its myDATA digital platform, which matches electronic transaction records against official tax filings. Cross-referencing data from 2023 and 2024 revealed significant gaps between declared activity and actual commercial operations.
In the third quarter of 2023 alone, 553 firms were caught reporting zero activity.
Following AADE intervention, 251 complied and declared an additional €17.5 million in previously unreported taxable revenue.
In a parallel operation targeting international fraud, auditors dismantled 129 so-called phantom trader operations involved in intra-community VAT scams.
The ghost entities had their tax identification numbers deactivated after authorities estimated the total loss to the state at €9.9 million.
"The landscape of tax audits has changed fundamentally with our new digital arsenal," said AADE Governor George Pitsilis, noting that the integration of artificial intelligence and a locked VAT return system — where filings must precisely match myDATA entries — leaves little room for manipulation.
Looking ahead, the AADE is moving toward what it calls Tax Administration 3.0 — a proactive enforcement model built on AI-powered risk analysis and digital client registries.
The agency is simultaneously accelerating legitimate refund processing, aiming to handle 95 percent of VAT refund requests automatically and immediately.
The announcements come as the Greek government continues its drive to narrow the tax gap, which remains among the largest in the European Union relative to the size of the economy.
By Kostas Tsachakis