The full and mandatory interconnection of cash machines with POS, implemented in the context of the digital upgrade of the tax administration, has served as a powerful tool for revealing the true extent of economic activity in important market sectors. Essentially, it brought to light a “treasure trove” of transactions that, although existing for years, remained undeclared and undetectable by the audit authorities.

According to the findings of a recent survey by the Independent Public Revenue Authority (AADE), dramatic increases in electronic payments were recorded in a multitude of sectors of the economy, as a result of digital transaction monitoring through POS-cash interface. The picture that emerges reflects a clear and promising message: technology and transparency are modern allies in the battle to increase government revenues and enhance tax compliance.

Explosive increases in electronic payments

A case in point is the computer programming sector, where POS transactions increased by an impressive 2,459%. In particular, from €4.8 million in 2023, they soared to €128 million in 2024.

There was also a significant change in the sector for the operation of halls – banqueting, cultural or sporting venues – where electronic payments increased from €3.5 million to €20 million.

Impressive increases were also recorded in traditional service sectors. In taxis, POS transactions increased by 221%, in transport by 57%, in catering by 39% and in the hotel industry by 24%.

The common conclusion of both the analysis of the AADE and the general feeling in society and the economy is that the rapid spread of electronic payments, combined with the full interconnection of cash registers with POS, is now an integral tool for broadening the tax base and enhancing transparency.

According to official data, the increase in public revenues for 2024 amounted to €2.66 billion, a substantial fiscal surplus. This development provides the government with the necessary space to implement permanent tax relief and promote social and developmental interventions. The relevant announcements are expected to be made by Prime Minister Kyriakos Mitsotakis at the upcoming Thessaloniki International Fair.

VAT increase and cash substitution – The sectors that stood out

The analysis by the ADSE shows that the largest contribution to revenue growth came from Value Added Tax (VAT). Certified VAT revenue increased from €16.38 billion in 2023 to €19.05 billion in 2024.

Electronic payments increased by a total of €7.5 billion, not including transactions through the IRIS interbank system. Of this total, €5.79 billion is a substitution of transactions previously carried out exclusively in cash. This trend has resulted in the disclosure of a large number of undeclared transactions and, by extension, has boosted both VAT revenues and the projected income tax collections for the next financial year.

The contribution of the tertiary sector was decisive: of the €8.3 billion of additional electronic payments, €7.5 billion came from services. Indicatively, the sectors with the largest increases in VAT amounts collected include:
* catering services with an increase of 37.9%,
* Transport with 32.9%,
* tourist accommodation with 19.7%,
* and car repair shops with 19.4%.

Tax compliance model

The survey notes that at least one-third of the total increase in VAT revenue over the 2022-2024 period is directly attributable to improved tax compliance. Technological infrastructure, data cross-checks and seamless information flow between cash registers and POS have created a more transparent and fair tax environment.

These new capabilities not only strengthen public coffers, but allow the government to design and implement meaningful reforms with a social dimension: with targeted reliefs, support for the most vulnerable, and incentives for entrepreneurship and investment.