How the Surge in Electronic Payments Boosted Greece’s Public Revenues

Greece saw a notable boost in public revenues in 2024, thanks to a rapid rise in electronic payments and a sweeping digital overhaul of how businesses issue receipts and report income.

A key driver behind this fiscal turnaround was the full

The result: fewer opportunities for under-the-table transactions, greater transparency, and stronger tax compliance—especially in sectors previously prone to tax evasion.

This shift has been particularly impactful in Greece’s service economy—transport, hospitality, retail, and professional services—which relies heavily on transactions with consumers. With every card payment now automatically linked to a tax record, authorities are better able to monitor real income, narrowing the shadow economy and increasing VAT collections.

According to Greece’s Independent Authority for Public Revenue (AADE), electronic transactions reached €47.7 billion in 2024—an increase of €8.3 billion from 2023. A striking 92.8% of those payments occurred in the service sector, highlighting just how much the move away from cash has transformed the country's consumer-facing industries.

Card-based revenue rose in 241 of the 282 sub-sectors in services. The biggest jumps came in retail (more than €3 billion), dining and food service (€1.47 billion), and tourism—particularly accommodations—which posted a €566 million increase. Other standout sectors included healthcare, IT services, land and air transport, and entertainment.

Beyond the headline numbers, some sectors saw explosive percentage growth. For example, IT consulting services saw a 2,459% increase in card transactions, cinema and performance venues rose 469%, open-air markets and street vendors jumped 271%, and gyms saw an 81% rise.

This digital payment wave also reshaped how consumers spend. In 215 of the 282 tracked sub-sectors, cash usage declined. AADE estimates that €5.28 billion in cash was effectively replaced by electronic payments. This shift is critical, as card transactions are traceable—making it far harder for businesses to underreport income.

Research from Greece’s leading economic think tank, IOBE, underscores the impact: for every €10 of new card-based spending, €0.67 in previously undeclared VAT revenue is recovered. That means the shift from €5.785 billion in cash to card payments is estimated to have generated €388 million in additional VAT revenue in 2024. The biggest gains came from food and tobacco retail, hospitality, beverage services, fuel stations, hotels, and telecoms.

But the benefits extended beyond VAT. Greece also saw gains in income tax collection, particularly among the self-employed. Over half (56%) were taxed using Greece’s presumptive income rules, which triggered €470 million in extra revenue.

Those declaring income based on actual earnings reported average profit increases of €4,500, contributing another €270 million in taxes.

Corporate tax compliance improved too. While overall turnover remained steady, the taxable profit margin widened, pushing corporate tax revenues up by €740 million.

In terms of VAT alone, Greece recorded a €1.836 billion increase in collections in 2024. About one-third of that—€522 million—came directly from compliance-improving reforms like the digital invoicing system and POS integration. The rest was driven by macroeconomic factors such as consumer demand and price shifts.