The University of Cyprus Economics Research Centre (CypERC), which has undertaken the preparation of the national Tax Reform, highlights Greece’s “myDATA” (My Digital Accounting and Tax Application) system as a model for Cyprus in its latest assessment report (October 2025). As Brief writes, developed by Greece’s Independent Authority for Public Revenue (AADE), myDATA is presented as a successful example of combating the shadow economy through digitalisation and real-time tax reporting.

According to the report, “the platform modernises tax reporting by requiring businesses to electronically transmit income and expense data — either in real time or periodically — via certified invoicing software, ERP systems, or directly through the online portal. The system automatically creates digital accounting books that reconcile transactions between suppliers and customers, enhancing transparency and reducing tax evasion. Since its gradual introduction in 2020, myDATA has significantly simplified tax procedures, improved transaction traceability, and strengthened overall compliance.”

The report further explains that “this integrated digital infrastructure — combining e-invoicing, fiscal memory devices, secure data interconnection, and AI-driven analytics — is designed to increase tax collection efficiency, reduce VAT fraud, and enhance compliance across all sectors of the economy.”

The CypERC team believes that adopting a similar system would ensure Cyprus’s readiness for the EU-wide mandatory e-invoicing rollout by 2028, achieving full interoperability with European standards and alignment with best practices in digital tax governance.

The report also references the Online VAT Fiscalization Project (2025), a joint initiative between CypERC and the KIOS Research and Innovation Center. The project argues that “improving VAT compliance requires a comprehensive approach that addresses administrative efficiency, system complexity, compliance costs, and enforcement, while ensuring that tax data are collected in real or near-real time.”

Auditors consulted by the Centre noted several key benefits of adopting a system similar to Greece’s myDATA in Cyprus:

Reduction of Tax Evasion and the Shadow Economy

Cross-checking invoices between suppliers and customers allows for the immediate detection of discrepancies or undeclared transactions, narrowing opportunities for tax evasion.

Simplification and Automation of Procedures

Tax declarations can be automatically pre-filled with company data, reducing administrative workload and saving time and resources for both taxpayers and authorities.

Transparency and Trust

A unified digital record of transactions creates a transparent framework for businesses and the state, improving confidence among taxpayers and investors.

Preparation for EU e-Invoicing Framework

Full alignment with European standards, such as PEPPOL BIS 3.0, will ensure Cyprus’s readiness for the EU’s e-invoicing requirements by 2028.

According to another government document titled “National Digital Decade Strategic Roadmap Cyprus”, the upcoming Online Fiscalisation sub-project aims to link businesses in real time with the Tax Department’s central server, ensuring all transactions are recorded digitally and immediately.

The Tax For All (TFA) project, launched in 2023 as part of Cyprus’s unified tax management system, lays the groundwork for further digitalisation and the future development of a myDATA-style infrastructure on the island.