Important changes start this year and will be completed in the coming years, which have to do with limiting the possibilities that taxpayers have to change the information included in the returns, whether they are income tax the VAT or E9, which in several cases caused a loss of revenue for the Greek government.
The Ministry of National Economy and Finance, in collaboration with the Independent Public Revenue Authority, are taking steady steps in actions that significantly limit the possibility of tax evasion.
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In this context and as announced, the VAT declarations from January 1, 2024 will be pre-filled. This means that both the income and the expenses of businesses and professionals that will appear in the VAT returns will be pre-filled and will be based on the data declared on the myDATA platform.
This practically means that the “cooking” which many indulged in and which resulted in “inflating” expenses and “declining incomes” will no longer be possible.
At the same time and as the head of AADE Giorgos Pitsilis has announced, from this year for over 1 million employees and pensioners the tax declarations will be pre-filled and will be automatically submitted by AADE, provided that the debtors do not take any action whatsoever.
In the plans of AADE, the system with pre-filled declarations is to be gradually extended to all sources of income as well as to immovable property, while the E9 declarations for real estate purchases and specific cases of parental benefits and real estate donations are already automatically submitted through the myPROPERTY platform.
What changes in VAT returns?
Let’s see in detail what changes for VAT returns:
1. With the new regime implemented in the VAT returns that professionals and businesses will submit from January 1, 2024, they will not be able to show less income or more expenses than what the Tax Office has pre-filled based on the data in myDATA.
2. In the first phase of the implementation of the measure, the possibility of corrections is provided with a decrease in income and an increase in expenses, but up to 30% in relation to what is present in the pre-filled VAT returns, with the limit limited over time until it becomes zero.
3. VAT Income – Outflow
* It is allowed to transfer amounts from an output code to another output code with a 0% VAT category.
* Submitting more revenue than what has been submitted to myDATA is allowed.
* In case of objective difficulty in correcting income, it is permitted to use an alternative way of pre-filling with Document Type 11.4 – Retail Credit Item, marked “Accounting Entry” and a distinct reference to the comments marked “Association Difficulty”.
4. Expenditures – Inputs of VAT
* The transfer of amounts from one input code to another input code is allowed for all categories of expenses.
* It is allowed to submit less expenses than what has been submitted to myDATA.
* In case of objective difficulty in transmitting expenses, it is allowed to use an alternative way of pre-filling with Document Type 14.30 – Entity Documents as Inscribed by the same (Positive) and a distinct reference in the comments with the indication “Association Difficulty”.
* Post-date declaration of expenses is permitted and systematically monitored, in a subsequent VAT tax period from the one corresponding to the date of issuance of the corresponding documents and appearing in myDATA, but within the year they relate to.
Pre-filled income statements
At the end of next month, the submission of tax returns will begin, which, among other things, will have a key difference compared to previous years. Taxpayers will see that the information concerning them is already pre-filled. The codes of income, property, any loans, expenses through receipts, and interest on deposits will also be filled in, while the system will allow corrections and additions in case taxpayers have changes in their family or property situation.
In the event that no changes are needed or that the taxpayer neglects to submit the return within the time limits mentioned by the legislation, then a return will be submitted automatically and the statement will be issued.
According to the design in the 2025 returns there will be more pre-filled data such as income from real estate, shareholdings in company capital, while the codes of the E2 form in which taxpayers show income from rents or vacant and freehold properties will also be filled in by the AADE.
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