this post was submitted on 25 Oct 2023
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It's 5% on average, in Greece it's 17%
This tax evasion is hugely widespread practice in Greece, and some "professionals" like doctors and lawyers are the champions. And of course they aren't only skipping VAT, they are also skipping the ~25% income tax. Whatsmore, the dumb greek state has instituted food stamps, tourism stamps, fuel stamps, all kinds of stamps which these laywers are getting because they declare so little income!!
To give you an idea, 60% of greeks declare < 10000 euro income, and 40% declare < 5000 , which is way below the minimal wage. As response to that greece has the highest indirect taxation (which is the most unfair) and punishing tax rates everywhere. It's madness
So this is not just a VAT gap, it is a general tax evasion as a national sport, and the VAT gap just on of many faces. Well, it is the job of a tax office to see that taxes are paid, so one might ask them what they are doing for a living...
Preach man. The tax office reports this statistics every year which clearly show it is not doing its job. The government's response: impose mandatory online systems for real-time reporting to the honest taxpayers. They are not doing anything for those who dont report at all. I have said many times, i 'd rather if the tax office was privatized or dismantled for incompetence.