Businesses formed since January 2024 will be on monthly instead of quarterly VAT returns
In a bid to curb tax evasion and improve VAT compliance, the Greek Ministry of Finance and the Independent Authority for Public Revenue (AADE) will introduce mandatory monthly VAT declarations for all new businesses and self-employed professionals registering from 1 April 2025.
The measure aims to prevent the rise of fraudulent “shell” companies that collect VAT from customers but shut down before remitting it to the state. See more in our Greek VAT guide.
Phased introduction for new businesses since 2024
The new monthly VAT reporting requirement will apply to:
- New businesses from April 2025 → Must submit VAT returns monthly from the outset.
- Businesses established in 2024 → Even if previously on a quarterly system, they must transition to monthly VAT declarations from July 2025.
- Existing businesses (pre-2024) → May voluntarily opt into the monthly VAT system starting October 2025.
Companies that maintain compliance for two years will have the option to revert to quarterly filings.
Tackling Greek VAT fraud
Authorities are tightening VAT governance after detecting a surge in fraudulent companies in industries such as hospitality, e-commerce, tech resellers, and nightlife. These businesses often register, collect VAT, and then close before their first tax payment is due—leaving a shortfall in state revenue.
By enforcing monthly VAT submissions, tax authorities can detect anomalies faster, track tax obligations in real time, and reduce the risk of unpaid VAT liabilities.
Strengthening VAT Governance in Greece
This reform aligns with broader efforts by AADE to modernize Greece’s tax system. Recent initiatives include:
- MyDATA e-books → A digital invoicing system requiring businesses to submit real-time revenue data.
- Cross-border VAT controls → Enhanced monitoring of e-commerce transactions and imports from non-EU countries.
- AI-powered audits → Deployment of AI and data analytics to flag suspicious VAT filings and identify patterns of tax evasion.
The government expects this measure to improve cash flow transparency, reduce tax fraud, and increase VAT collection efficiency. Businesses are encouraged to update their accounting practices and explore digital tools to streamline their compliance.
Greek tax authorities will closely monitor the effectiveness of monthly VAT declarations and may expand the system if it proves successful.
