As Greece enters the height of its summer tourist season, the country’s tax authorities are ramping up oversight of seasonal tourism and hospitality businesses, activating new financial control tools to combat tax evasion, a long-standing challenge in the industry.

The Independent Authority for Public Revenue (AADE) has announced intensified inspections throughout July and August, including the deployment of drones to monitor economic activity. At the center of this effort is the enforcement of a new tool: interim tax assessments, aimed at businesses deemed at high risk of tax evasion, particularly those that appear briefly during the summer only to disappear before settling their tax obligations.

Cracking Down on “Vanishing Acts”

In recent years, Greek tax authorities have observed a recurring pattern: seasonal businesses, especially on islands or in popular tourist destinations, appear to operate legally at the start of the season — registering with tax authorities and even submitting initial VAT declarations — only to vanish by the end of summer without paying dues or making arrangements for repayment.

To address this, AADE will now implement interim tax assessments when signs of imminent or ongoing tax evasion emerge. This includes newly established or seasonal businesses, as well as cases where there is suspicion that the taxpayer might leave the country before fulfilling their financial obligations.

This allows tax inspectors to assess and demand payment for taxable income before the business closes or the season ends — a significant shift from past practice, where full reviews often took place months later, sometimes when the business had already ceased operations or become untraceable.

Example: How the New Tax Measure Works

Under the new regime, if a business is launched in May on a Greek island and submits its VAT declaration for the second quarter in June — but fails to pay or arrange payment — tax authorities can intervene much sooner.

Should a tax inspection occur in late August, officials will not limit their audit to activity through June. They will also examine transactions from July and August, and issue a binding tax assessment on the spot, requiring immediate payment. Until last year, this type of review would typically occur only after September.

Who Is Affected — And Who Isn’t

Authorities are keen to stress that this is not a sweeping policy targeting all businesses. Rather, it is a targeted measure designed to address specific tax behaviors among businesses with risk profiles that suggest a likelihood of evasion or sudden closure.

If a tax debt is confirmed through interim assessment, the taxpayer has several options: pay the amount in full, offer a guarantee, or accept a lien on personal or business property to cover the debt. These conditions remain in effect until the debt is fully paid.

Additionally, within 12 months of the interim assessment, a final corrective tax assessment may be issued based on additional findings or adjustments.

Monthly VAT Filing for New Businesses

In a complementary move, Greece has also activated a measure requiring monthly VAT declarations from businesses that launched operations after April 1, 2025. This applies also to businesses that opened during 2024 and up to March 2025.

The goal is to closely monitor financial activity during their early operational phase. After two years, businesses using simple bookkeeping methods will again have the option to switch back to quarterly VAT reporting.