Greece: VAT revenues beat target as households pay more for the same goods

New data from Greece’s General Accounting Office reveal a stark contrast in the economy: while state coffers swell from rising prices, household budgets are being squeezed ever tighter. VAT remains the main pillar of this tax revenue growth.

According to the data, VAT revenues reached €20.54 billion by the end of August — €905 million above target, even excluding a one-off €306 million revenue from the Egnatia Odos highway concession. In total, tax revenues for January–August reached €49.48 billion, €1.79 billion above target.

Excluding two extraordinary revenues — the €306 million from Egnatia Odos and the second €135 million installment of the Ellinikon casino’s operating license fee, initially expected at the end of 2025 — collections reach €49.04 billion, a surplus of €1.35 billion, or 2.8% above target. In August alone, the state collected €6.68 billion in taxes, €363 million (5.7%) above target, while the budget’s primary surplus over eight months reached €6.53 billion.

But rising VAT does not mean Greeks are consuming more — they are simply paying more for the same goods. High prices are not expected to fall soon, even though inflation is easing, according to the report.

On the other hand, special consumption taxes (EFK, including fuels) reached €4.66 billion, €230 million below target, as oil and gasoline consumption falls due to high fuel prices — a trend expected to deepen by year-end, as eKathimerini reports.