European Commission: The VAT compliance gap in Greece exceeds the EU average

epa04547273 An illustration picture shows a one euro coin in water, which reflects the Greek flag, in Schwerin, Germany, 05 January 2015. The situation in Greece and the monetary policy of the ECB have caused the commom currency euro to drop to its lowest rate since 2006. EPA/JENS BUETTNER

Greece’s taxation system needs, among others, more efficient revenue collection and better VAT compliance, the European Commission said in its annual report on tax reforms in EU member-states presented on Monday.

According to the report, the VAT compliance gap in Greece exceeds the EU average; however it is possible to improve tax compliance. In the telecommunications sector, in particular, Greece could improve the efficiency of the VAT system, by limiting the use of reduced rates and non-mandatory exceptions and by broadening the VAT base.

Concerning the other member-states, the Commission states that progress has been made in improving their taxation systems, but most countries still face significant challenges and must continue their efforts.