Author:
George Giannopoulos
Partner
[email protected]
Edited by:
Grant Gilmour, B.SC., MBA, CPA BC, CA, CPA AZ
Integra Tax World Newsletter Editor
E: [email protected]
Law 5104/2024 (Tax Procedure Code) was published on April 20th 2024 being effective immediately.
The new Law indicates change in accounting – tax procedures and bring new procedures as well.
Efficiency measures
The main efficiency provisions of the Law 5104/2024 to update the Greece tax system include the following:
- Pre-filled tax returns: obligation to prepare tax returns is abolished for taxpayers, who have income exclusively from wages and pensions. The tax return is automatically pre-filled by the IAPR (Independent Authority for Public Revenue) and is also automatically finalized if the taxpayer does not raise objections within the deadline for submitting the tax returns.
- Taxpayers who keep books based on the simple accounting system are exempted from the obligation to present their accounting records to the tax administration, as long as all the relevant data (income – expenses) are transmitted to the myDATA platform.
myDATA (my Digital Accounting and Tax Application) is the name of the new electronic platform by which IAPR introduces electronic books into the daily lives of businesses.
Electronic Books is a very important step in the digital transformation of the Tax Administration and its relationship with businesses. Along with reducing the administrative costs of businesses, IAPR e-books enhance the transparency of transactions by providing a digital business collaboration environment for the pricing of goods and services.
The introduction of IAPR e-books does not cease accounting for businesses, and the role of the accountant for the proper visualization of transactions on the myDATA platform remains critical
- Faster procedure for issuance of tax certificate when there are debts to third parties. With this arrangement, the Municipality-Public parties will communicate with the AADE only electronically, either for the prohibition of providing information or for the lifting of this prohibition.
- A specific time frame is set for tax audits. Maximum time limit for the completion of the tax audit, in one year from the notification of the audit order with the possibility of extension for 6 months if the audit has started in the meantime and another 6 months provided that during this time it is possible to completion of the audit.
Climate resilience tax
A climate resilience tax is imposed, in favor of the State, which replaces the accommodation tax, per daily use and per room or apartment. The fee is an obligation for the resident who used the room or apartment and is paid by the businesses.
Depending on the months (March-October and November-February) the corresponding fees are imposed.
Pre-fill of VAT returns from the obliged self-employed professionals and businesses
IAPR (Independent Authority for Public Revenue) introduced a new system with mandatory pre-completion of VAT returns for companies and self-employed professionals.
- The VAT returns pre-filled via myDATA platform by AADE since 1st of January 2024.
- Income amounts cannot be less than what is sent to myDATA platform and expenses amounts cannot be more than what is sent to myDATA platform.
- There is a provision for deviation from this rule up to a percentage of deviation of 30%, which will be reviewed periodically, so that it is gradually eliminated.
- After deadline expenses amendment is allowed in a following VAT period but always within the tax year.
VAT on food & drink services
The supply of non-alcoholic beverages, juices and coffee is now subject to two different VAT rates (24% or 13%), depending on whether they are intended for on-site consumption, an act characterized as the provision of a restaurant and catering service, or whether they are intended to be “take away” with the result that the relevant VAT rate is applied each time.
Law 5073/2023 introduces reforms to the activity of short-term rental properties.
- Eligible short-term leases will be required to have a maximum duration of 60 days, as opposed to a maximum duration of 1 year under the previous framework. The 60-day limit will apply to each short-term tenancy individually, therefore, by way of example, taxpayers are entitled to rent their properties throughout the year, provided that the duration of each short-term tenancy does not exceed 60 days. The new framework applies to short-term leases regardless of whether the property is listed on a digital platform or not and regardless of whether the short-term lease is entered into via a digital platform.
- The income that private individuals obtain from the short-term rental of up to two properties is classified as real estate income. This applies on the condition that no services are provided, apart from the supply of bed linen as under the previous framework. Income earned by individuals from short-term rentals of three or more properties is now classified as business income rather than real estate income, as it was until now.
- For leases entered through digital sharing economy platforms, taxpayers’ failure to register properties in the “Short-Term Property Registry” results in fines equal to 50% of the gross income generated within the year of the violation, with a minimum 5,000 euros. Repetition of the same offense within the year increases the fine to double.
About the Author:
George Giannopoulos
Partner – Prooptiki SA
George is a partner at Prooptiki SA with professional accounting and tax experience in Greece and in the UK. He has accounting experience working for global media agencies in London and for several Greek and international clients of Prooptiki SA. George is also a member of the Economic Chamber of Greece.
Graduate of Piraeus University of Applied Sciences, Department of Accounting.
He furthered his academic background by attending a master’s degree program in International Accounting and Finance of the University of Kent, UK and participated in tax seminars organized by Athens University of Economics and Business.
George holds professional experience in International Accounting in Greece and abroad, being one of the leading members of our team in Accounting and Tax issues.
He is the contact person of the company and responsible for reaching our new and old clients in order to discuss the needs of their businesses and to jointly define the context of cooperation with our company.
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