Tax evasion: Electronic transactions raise revenue –

The crackdown on tax evasion is paying off and allowing the government’s finance staff to plan its next moves to cut taxes over the next three years.

The interconnection of cash registers with POS and the spread of electronic transactions, gradually in an increasingly wide range of economic activity, in combination with the controls of the AADE, paves the way for the achievement of the goal of increasing the annual revenue from tax evasion to 2 .5 billion euros by 2027 and widens the scope for reducing tax burdens which is a key commitment of the government.

The figures for the course of tax revenues are indicative, according to which in the first half of this year VAT revenues showed an increase of 10.3% compared to the corresponding half of last year, which is attributed to the interventions related to the expansion of electronic transactions as and in the development of the economy

This policy of the Ministry of Finance will continue, as Finance Minister Kostis Hatzidakis has announced. Thus, from 2025, electronic invoices will be made mandatory in accordance with the decisions that have been announced, while the use of POS will be extended to the retail sales of more sectors of the economy.

The process is already underway to apply the new sticker on TAXIS that will inform customers of the obligation of professionals to accept payments via POS. It is indicative that, without the measure having yet been implemented, electronic transactions in TAXIS are moving at twice the rate compared to 2023. Also characteristic of the results from the increase in the use of electronic transactions is the increase in the declared turnover in the focus which is accompanied by an increase in declared gratuities by 400 million euros.

Another one of the interventions that the financial staff will proceed with in the first quarter of next year is the expansion of the use of direct payment systems, such as IRIS, in order to cover all businesses. According to the latest data, 3.3 million IVANs have been connected to IRIS.

Electronic transactions

Characteristics for the expansion of electronic transactions and the increase in the turnover declared to the tax authorities from basic economic activities are the following figures announced by the Ministry of Finance:

The other side of the coin of curbing tax evasion is rewarding consistent taxpayers

-The turnover of POS transactions in the catering sector in the eight months of January – August this year amounted to 5.5 billion euros, significantly higher (by 700 million euros) than the turnover of 4.8 billion euros in the corresponding period last year. The Ministry of Finance estimates that on an annual basis this turnover will reach 7.9 billion euros, higher by 1.1 billion euros than last year’s equivalent (6.8 billion euros)

-In the hairdressing and personal care sector the turnover declared via POS in the eight months of 2023 was 326 million euros, while in January

-August 2024 amounted to 371 million euros. In total, in 2024, it is estimated that the turnover of this sector will reach 575 million euros with an increase of close to 14% from last year.

-In taxis POS receipts jumped by 177% compared to the corresponding eight months last year. In particular, in the eight months of this year there were collections of 50 million euros compared to 18 million euros in the corresponding period last year. It is estimated that on an annual basis the total turnover through electronic transactions in this sector will rise to 73 million euros from 26 million euros last year.

The other side of the coin of curbing tax evasion is rewarding consistent taxpayers. At the beginning of the week, Mr. Hatzidakis announced changes to the process of submitting tax returns, based on which taxpayers who submit their tax return on time and pay the income tax in one go are rewarded with a higher discount.

Thus, the tax deduction from 3% that has been in force until now increases to 4% if the declaration is submitted within the first month and a half of the deadline for submitting tax declarations, which is now fixed on March 15 and will be completed on July 15.

Source: APE – MEB