AADE authority set-up AI-backed unit to take on VAT missing trader fraud and other tax evasion
The Greek tax authority, Independent Public Revenue Authority (AADE), has established a new centre powered by AI tools to identify VAT carousel similar tax evasion. This is similar to the Austrian AI VAT centre and similar projects to fight the VAT Gap.
In particular, using MyDATA VAT transaction reporting, the centre will be looking to use AI to identify unusual patterns in trade, especially around missing trader frauds. Greece has one of the largest VAT Gaps in Europe, last estimated at €3.2 billion by the European Commission in 2021. This is 17.8% of anticipated VAT revenues compared to the EU average of 5.3%.
The new group will seek to use various machine-learning and generative AI model for some of these areas of VAT and other tax evasion. This includes real-time national VAT transaction compliance Monitoring and predictive analytics.
In particular, spotting possible fraud across various data sources:
- Uncovering missing trader and related carousel frauds through VAT returns and MyDATA
- Analysis of payment provider CESOP payment reporting for suspicious payments
- Income tax fraud by accommodation sharers
Many other examples of tax authorities adopting AI VAT fraud measures have been published.
Watch VATCalc’s new AI VAT Advisor deliver tax advice (legislative references and tax cases) on complex VAT questions.
Read more in our Greek VAT Guide.
VAT fraud in Greece
VAT fraud in Greece has been a significant issue, impacting public revenue and the country’s economy.
This type of fraud typically involves businesses failing to declare or under-reporting their VAT liabilities, using practices like issuing fake invoices, carousel fraud, or under-the-table transactions. The underground economy in Greece, along with complex tax regulations, has created opportunities for such illegal activities. VAT fraud reduces government revenue, hinders public services, and fosters unfair competition.
In response, Greek authorities have implemented stricter controls, digital tax systems, and enhanced audits to combat the problem and improve tax compliance across the country.
