Greece leads EU in rising reliance on VAT revenue

According to the European Commission’s Annual Report on Taxation 2026, Greece has become the EU member state with the largest increase in the share of value‑added tax (VAT) in total public revenues. Between 2014 and 2024 the VAT‑to‑total‑tax‑revenue ratio rose by 3.1 percentage points, outpacing the next highest increases in Hungary (2.3 points) and Italy (1.8 points). While most EU countries are reducing reliance on consumption taxes, Greece’s VAT contribution reached 18.1 % of EU‑wide tax revenues and accounted for 37.8 % of its own total tax income in 2024 – 11 points above the EU average. This shift places a heavier burden on lower‑income households, as VAT is applied uniformly regardless of earnings. The report also notes a substantial compliance gap, suggesting that improving electronic invoicing (the myDATA system) could raise additional revenue without raising tax rates.