Hitting tax evasion and smuggling with 10 “weapons”

In the next few days, the draft law will be introduced with new “weapons” to combat tax evasion and smuggling, with the aim of raising at least 2 billion euros by 2026 by reducing the value-added tax gap from 15%, which is currently estimated at 9%.

The additional revenues that will arise from reducing tax evasion constitute the “key” that will open the door to new tax breaks for families and companies.

This draft law comes after the provisions that were legislated in the summer to eliminate tax evasion through digital platforms, while at the beginning of 2024 another draft law will come that includes changes to the tax framework for independent workers, with the government ruling out an increase in tax rates. Minister of National Economy and Finance Kostis Hatzidakis stated ( On Sky) the system to be adopted will lead to those who evade taxes having to pay more to the tax office.

The additional revenue generated by reducing tax evasion will open the “door” to new tax breaks for households and businesses.

The draft law, which will be submitted to Parliament by the end of the month, stipulates the following:

1. Mandatory use of electronic invoices so that transactions are scanned and verified in real time. At the same time, tax authorities’ controls are being strengthened, automated and digitalised.
2. Universal eBook Application (myDATA). The declared income cannot be less than that generated by electronic information (myDATA, Cash-POS), while only those transmitted electronically to myDATA will be counted as expense invoices for tax purposes.
3. Expanding points of sale to include the rest of the retail market branches that do not currently have to comply. Today, dozens of commercial buildings do not have to have points of sale, such as gyms, tutoring centers, parking lots, cinemas and theatres, as well as car rental companies that are not obligated to also have a cash register. There is also no obligation to install points of sale in kiosks or taxis. Of course, it is worth noting that many professionals already have points of sale for transactions with their clients.
4. Activating the digital shipment note (experimental from the beginning of 2024 and fully before the end of the same year) with the aim of tracking goods in transit in real time.
5. – Increasing the fine for using cash exceeding 500 euros to an amount twice the transaction amount, while strengthening controls for implementing the procedure through digital information.
6. Most social and welfare benefits (children’s benefits, maternity benefits, unemployment benefits) are paid by debit card.
7. Excluding perpetrators of smuggling crimes from cooperating with all fuel trading companies and creating a register for violators.
8. Natural persons with three or more properties on a digital platform will have to start a business by paying the corresponding insurance contributions, business tax and VAT from the first property to obtain income.
9. Short-term rental income of legal entities and sole proprietorships with KAD will be subject to VAT, non-resident tax and accommodation tax, as it applies to hotels and room rental companies.
10. For failure to register in the register of short-term rental properties, the fine increases and is set for each use at 50% of the gross income of the last tax year with a minimum of 5,000 euros, while today it is horizontal at 5,000 euros. . In case of repetition for the next use, the fine will be doubled.

Source: OT