The Independent Authority for Public Revenue (AADE) in Greece has released data on its anti-tax evasion audits conducted between May and September, with a specific focus on Greece’s popular summer destinations.
The AADE reported that 33.73% of businesses audited in high-risk, tourism-related sectors showed violations. Notably, 41% of all audits were concentrated in the tourism sector, including restaurants, bars, hotels, and similar accommodations.
Regions with the highest tax evasion rates
The audits revealed that tax compliance was worst in the Peloponnese, where the Corinthia prefecture recorded a violation rate of 54.02%. Other regions with high rates included Central Greece, where Evia reached 47.44%; Western Greece, with Ilia at 47.22%; Crete, with Chania at 43.83%; and the South Aegean islands, with the Dodecanese at 39.72%.
Conversely, violation rates remained relatively low in the North Aegean, Eastern Macedonia, Thrace, and Western Macedonia.
AADE inspectors imposed fines and ordered closures of 48 hours or more on 300 businesses, with the majority (69%) operating in the food service sector and beach amenities (umbrellas and seats).
Furthermore, 202 cases of businesses failing to connect their POS terminals to cash registers were identified, leading to fines totaling €2,590,500 (about $3 million). These operations included targeted efforts such as the “I’ll take you on a cruise” operation, which focused on day-trip boats on Santorini, Kos, and other islands.
Cases of major violations
Penalties were significant across the country, particularly for repeat offenders. In Heraklion, Crete, for instance, a restaurant was fined and closed for four days for failing to transmit 18,515 receipts worth €275,000.
On Paros, a woodworking business received a fine of €33,360.85 and a 2-day closure for not transmitting receipts worth €111,000 and failing to connect its POS device. In Gytheio, Laconia, a supermarket received a fine and a 48-hour closure for omitting 5,409 documents worth €101,000.
On Mykonos, an art shop that had evaded over €26,000 in VAT on sales totaling €107,000 over two years was fined and closed for two days. Separately, an Italian restaurant on Mykonos received a 48-hour closure for failing to issue a single receipt worth €28,000.
High-profile closures also occurred in major tourism spots. Two popular beach bars on Santorini were closed for two days for small amounts of unissued receipts (€1,644 and €1,141, respectively), while on Samos, a restaurant received the harshest penalty—a 96-hour closure—due to increased sanctions for being a repeat offender.
Tax evasion was frequently found in beach amenity businesses, resulting in 48-hour closures across popular beaches in Chania, Rhodes, Syros, Sifnos, and Poros for unissued receipts totaling over €10,000.
Additionally, personal service businesses, including hair salons and beauty services in Athens, Thessaloniki, Patras, and many Aegean islands, were sealed for two days for failing to issue receipts valued at over €55,000 combined.
Related: Greece to Pay Citizens €3,000 for Reporting Tax Evasion
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