Automatic audit from Greek tax authorities in business transactions to limit tax evasion
The new tax bill, which includes a plan to limit tax evasion, has been tabled by the government in the Hellenic Parliament in order to follow the authorizing decisions and bring its provisions into force in 2020.
This tax bill includes e-books and e-invoices that pave the way for express tax returns to consistent businesses and professionals, while also helping the work of the audit authorities to reduce the underlying economy and tax evasion. That way, traditional revenue-and-expenditure books will be a thing of the past.
The exchange of electronic documents between businesses, in particular electronic invoices and e-mails, in order for Taxis.net and the tax authorities to be fully aware of transactions through direct connection, is particularly important as the audit authorities will be aware directly the transactions that have been made.
By activating the new system, the Greek tax authorities will automatically view, check, and cross-check the data displayed in the e-books of all businesses. The automation of the audit procedures will immediately unlock the income tax and VAT refunds that the consistent companies are entitled to, who are currently required to wait for the tax refund they are entitled to.
At the same time, e-books will lead to the automation of tax return filing and will free businesses and professionals from submitting aggregated customer-supplier statements.
The name of the new electronic platform will be myDATA, i.e. my Digital Accounting and Tax Application. Under the new system, all businesses and freelancers will have to declare their invoices and fill out their books electronically and directly with Taxisnet.
What does the new system includes?
E-books and e-invoicing, in addition to automating filing and submitting procedures, reduce management costs for businesses and eliminate supplier aggregated statements. Under the new system:
Every business and freelancer who passes invoices electronically will receive a unique MARK registration number.
Tax data issued should be submitted no later than the 20th day of the following month, from the completion of the three-month or monthly VAT filing period.
In parallel, recipients of invoices will see the publishers' invoices in their own e-books. At the same time, the tax forms of income statements and VAT are updated with the data of the books, so that these tax returns are pre-filled and allow all data to be cross-checked immediately.
Electronic cross check
Through the myDATA online platform, businesses' tax returns data will be compared with their e-books and invoices data. The first comparison will take place the day after the deadline for submission of all types of statements.
In the event of a disagreement in principle, the AADE (Independent Public Revenue Authority) will send relatively automated messages to the businesses to take the necessary corrective actions within two months. Immediately after the two months of harmonization, the tax returns data of businesses are again compared with the data in their e-books. In the event of unjustified discrepancy and depending on the assessment of the seriousness of the discrepancies, the enterprise will be subject to tax control and penalties.