Over €175 Million in Tax Refunds Remain Unclaimed in Greece

Hundreds of Millions in Income Tax and VAT Refunds Frozen

More than €175 million in income tax and VAT refunds remain unpaid in Greece due to administrative and procedural obstacles. Thousands of taxpayers and businesses are entitled to receive funds, yet the disbursement process has stalled.

According to data from the Independent Authority for Public Revenue (AADE), total pending tax refunds reached €722 million in December. Of this amount, €176 million concerns cases where taxpayers have failed to complete the necessary steps, including declaring a bank account, providing a valid email address or submitting required supporting documentation.

Breakdown of Pending and Overdue Refunds

Out of the €722 million total, €336 million represents overdue refunds, meaning that more than 90 days have passed since the issuance of the Individual Tax Deduction Sheet (AFEK). The remaining €386 million concerns refunds that have not yet reached the 90-day threshold but still represent a substantial volume.

Although not all cases are formally overdue, the scale of pending refunds highlights ongoing administrative bottlenecks within the tax system.

Causes of Delays

The primary reasons behind the stalled refunds are procedural. In several cases, beneficiaries have not declared a bank account for payment. Others have failed to provide a valid email address for official communication or have not submitted the necessary supporting documents required to finalize the refund.

As a result, a significant portion of the unpaid amounts is linked to incomplete compliance rather than disputes over tax assessments.

AADE Plan to Accelerate Refund Processing

AADE has announced measures aimed at eliminating refund applications pending for more than 90 days and accelerating automation. The new plan includes processing at least 95% of VAT refund requests within 90 days, periodic automated assessment of claims, the use of a so-called Golden List to fast-track VAT credit refunds and further digitalization of the tax refund system.

The Golden List includes compliant businesses and professionals with a clean tax record, allowing them to receive VAT refunds without additional intervention by tax officials.

Impact on Business Environment

Timely tax refunds are crucial for liquidity, especially for small and medium-sized enterprises that rely on VAT credits to support working capital. Reducing overdue refunds is therefore seen as an important step in strengthening trust in the tax administration and improving the investment climate.

As experts from International Investment report, faster and more automated tax refund procedures enhance fiscal transparency and support Greece’s broader efforts to modernize its tax administration framework and attract sustainable investment.