Businesses and professionals who received large income tax and VAT refunds this year are coming under increased scrutiny by Greece’s tax authority, according to reports from ertnews. The revelation of so-called ‘phantom’ tax refunds totaling €13.4 million—recently uncovered by the Money Laundering Authority—has triggered a wave of investigations aimed at verifying the legitimacy of these payments and identifying potential fraud against public interests.
Following an initial automated review of refund cases, authorities will conduct cross-checks based on specific criteria. Taxpayers found guilty of evasion may be asked to provide explanations and ultimately repay the amounts with interest. Particular attention will be given to individuals and companies that claimed disproportionately high refunds compared to their declared income or turnover, as well as those submitting suspicious amended declarations.
It is worth noting that income tax refunds have become more immediate. Notifications for taxpayers without tax, insurance debts, or restrictions on financial clearance are sent directly to the Bank of Greece for weekly disbursement. For those with existing tax liabilities but no insurance issues, refunds are offset accordingly, though some delays may occur when central systems cannot handle the offset automatically.
Refunds are also being reconciled with ENFIA property tax obligations where applicable. According to preliminary budget execution figures released yesterday, tax refunds reached €5 billion between January and July 2025, including a €784.8 million VAT refund linked to the new Attiki Odos concession agreement. Excluding this amount, tax refunds still totaled €4.26 billion—exceeding the 2025 budget target by €252 million.
In terms of VAT refund audits, they will focus on companies with questionable past tax behavior. Unusual discrepancies between declared and requested amounts, inconsistencies between turnover and refund claims, and repeated requests for abnormally large sums will serve as red flags during inspections. Newly established and seasonal businesses previously exploiting quarterly VAT filing cycles (a system changed as of July 1) will also come under fire.
These entities often followed a predictable pattern: setting up operations, collecting VAT, then disappearing before fulfilling declaration and payment obligations. The digital arsenal of auditors continues to expand, incorporating electronic invoicing, live audit platforms, POS integration, BANCAPP systems, and digital client registries. This year alone, the Independent Authority for Public Revenue (AADE) plans to conduct 4,200 VAT refund audits.