Tax evasion: Hitting tax evaders and smuggling with 10 “weapons”

In the next few days, the bill with the new “weapons” to fight tax evasion and smuggling, aiming to collect at least 2 billion euros by 2026 by reducing the VAT gap from 15%, which is currently estimated to be 9 %. The additional revenues that will arise from the reduction of tax evasion are the “key” that will unlock the “door” for new tax breaks for households and businesses.

This bill comes after the provisions legislated in the summer to crack down on tax evasion through digital platforms, while at the beginning of 2024 another bill will come with changes to the tax framework of freelancers with the government ruling out an increase in tax rates and the Minister of National Economy and Finance Kostis Hatzidakis to state (on Sky) that the system that will be adopted will lead those who evade taxes to pay more to the Tax Office.

The bill that will be submitted to Parliament by the end of the month provides for:

• Mandatory use of electronic invoices so that transactions are cross-checked and verified in real time. At the same time, the controls of the tax authorities are being increased, automated and digitized.
• Universal application of electronic ledgers (myDATA). The income declared cannot be less than that resulting from the electronic information (myDATA, cash-POS), while only those that have been transmitted electronically to myDATA will be counted as expense invoices for tax purposes.
• Expansion of POS to the remaining branches of the retail market that currently do not have the obligation. Today, it is not mandatory for dozens of business premises to have a POS, such as gyms, tutoring centers, car parks, cinemas, theaters, as well as car rental companies that are not obliged to also have a cash register. Also, there is no obligation to install POS in kiosks or taxis. Of course, it is worth noting that many professionals already have a POS for transactions with their customers.
• Activation of the digital consignment note (pilot from the beginning of 2024 and fully before the end of the same year) with the aim of real-time tracking of goods in transit.
  Increase of the fine for the use of cash over 500 euros, to an amount twice the amount of the transaction, with strengthening of controls for the implementation of the measure through digital information.
• Payment of most social and welfare benefits (child benefits, birth benefit, unemployment benefits) by debit card.
• Exclusion of smuggling offenders from cooperation with all fuel trading companies and creation of a register of offenders.
• Natural persons who have three or more properties on a digital platform will have to start a business activity by paying the corresponding insurance contributions, business tax and VAT from the first property for the income.
• The short-term rental income of legal entities and sole proprietorships with KAD will be subject to VAT, Non-Resident Tax and accommodation tax, as applies to hotels and room rental businesses.
• For non-registration in the Register of Short-term Rental Properties, the fine increases and is set per use to 50% of the gross income of the last tax year with a minimum amount of 5,000 euros, while today it is horizontal at 5,000 euros. In case of recurrence for the next use the fine will be doubled.