Filenews 5 July 2025 - by Eleftheria Paizanou
Over 363,000 taxpayers received tax refunds of €688 million in their bank accounts for 2024. In fact, last year the amount of tax refunds was increased by €61.5 million since the previous year, due on the one hand to the implementation of the Tax For All computerized system and the change of the European directive that contributes to the absence of practical restrictions on VAT and on the other hand to the procedures applied by the Tax Department for the clearance of delayed work.
In detail, in 2024 actual VAT refunds amounted to €579.9 million, compared to €534 million that were returned in 2023. It is worth noting that this amount also includes the amounts of set-offs, i.e. revenues and debts to and from the state.
A decisive role in the increase of VAT refund amounts was played by Tax For All, with which the examination of requests and the volume of VAT examination have been accelerated with specific criteria. In addition to the implementation of the new uniform computerized system, another factor that contributed to the increase in VAT refund amounts was the change in the procedure, which was a European directive. In recent years, the funds for tax refunds are included in the revenue budget of the Department, resulting in no longer restrictions on the timely refund of VAT.
In detail for 2024
According to data from the Department of Taxation, VAT refunds were made of €579.9 million. Of these, an amount of €513.5 million has been forwarded either through bank transfers or through cheques. At the same time, VAT of €10.8 million. has been offset against debts owed by debtors to other government departments, while €41.9 million has also been set-off for direct taxation.
Also, an amount of €13.3 million involved transfers between taxpayers and VAT, fines of €1,841 have been imposed and remittances of €258,253 have been made abroad.
2023 figures
Moreover, in 2023, total VAT refunds of €534.3 million were made. Of these, remittances of €474 million were made to taxpayers. At the same time, an amount of €13.8 million are set-offs with other government departments, €35.4 million concern set-offs with direct taxation and €6.1 million other set-offs. In addition, transfers of €3.6 million were made. between taxpayers and VAT, while fines of €1,035 were also imposed. Also, an amount of €656,000 are remittances abroad.
€108 million was returned.
At the same time, another 296,600 taxpayers were refunded income tax of €108 million. As the Department of Taxation notes in its 2024 annual report, the clearance of late work continues to play a key role in the progress of tax clearance both in the number of taxes and in the amount of the income tax refund amount.
"Having cleared most of the declarations of individuals and companies in previous years, the liquidation of the remaining more recent tax years continues," it said. So far, they have received a tax clearance of 147,000 natural persons, i.e. employees, out of the 294,000 taxpayers submitting a tax return. It is worth noting that they were refunded taxes of €24 million.
In detail, by 2024, 296,669 taxpayers were refunded income tax of €108 million. Of these, 17,664 persons were self-employed and directors receiving an amount of €4.8 million, 258,681 were employees who received an amount of €55.7 million. and 20,324 legal entities that received a tax refund of €47.7 million. In 2023, income tax of €91.2 million was refunded to more than 280 natural and legal persons.
The extraordinary contribution for defence
Meanwhile, another 1,358 taxpayers had a refund of an extraordinary contribution for defence from interest totalling €189,800. The refund of an extraordinary contribution for interest protection concerns natural persons with a gross annual income of up to €19,000. In 2024, 65,912 defence taxes were imposed, of which 1,358 had a refund of an extraordinary contribution for defence from interest totalling €189,800.
In 2023, an extraordinary contribution for defence of €1.4 million was returned to more than 5,297 taxpayers.
