Spending reported by self-employed and freelancers will be targeted taxation administration to limit tax avoidance and increase your taxable income. According to him Ministry of Financethe self-employed have a gross income of 35-40 billion euros per year, and their taxable income is less than ten times and does not exceed 4 billion euros.

In fact, the Commission notes in its recent report that, based on the data, the turnover of the self-employed increased rapidly, while their declared incomes increased slightly.

“This discrepancy likely indicates significant tax evasion and loss of government revenue. The situation can be improved by reviewing the current system of self-employment taxation and greater use of information from electronic payments,” the Commission notes, linking the ongoing digitization of AADE with better control of those who hide taxable material.

According to information already AADE give priority to dealing with self-employed and self-employed cases where deductible expenses are likely to be higher than the industry average.

Until the system is changed, which provides for the linking of almost all expenses with electronic books, the tax administration will rely on the declared data arising in the branches of the Greek economy. In the event that some small businesses or the self-employed report spending above average, they will become candidates for control.

The only way to curb tax evasion, Treasury Department officials say, is to increase electronic transactions and further use of e-books. Based on the above, the POS-checkout-taxi relationship, incentives to improve the efficiency of electronic payments and e-books will be used to the maximum to reduce the delinquency rate, which remains high in some service industries. The same leaders note that a necessary condition for the abolition of extortion, with which the Commission agreed, is to limit tax evasion. According to the latest EU data available, Greece has managed to narrow the gap in VAT revenue from 29.1% of potential collections in 2017 to 14% in 2021, but it is still far from the European average of 9%.

POS – cash registers – taxi interface and incentives to increase the number of electronic payments.

What the plan to reduce tax evasion includes:

1. For better control of expenses, it is planned to recognize only those expenses that go through e-books. My details. That is, all freelancer expenses, whether it is a VAT deduction or a reduction in only taxable income, must go through e-books. Essentially, they must request an invoice for all their expenses.

2. In our country (and in most European countries) electronic invoicing is not mandatory. However, it is now recommended by the EU. use of electronic invoicing to limit tax evasion, mainly on VAT. In fact, the plan envisages that from January 2024 Member States will be able to introduce electronic invoices, and from 2028 the plan will become mandatory for all Member States.

3. Digital client base for doctors, lawyers, etc. (Essentially, the additional books that were kept until 2012 will be back, but in electronic form). Certain professional groups will be required to maintain a digital registry that will be auditable and will be compared with declared income. The digital client base in the second phase will be connected to MyDATA.

4. In the next period, an electronic invoice will be put into effect. Thus, the movement of products (construction, agricultural, etc.) will be controlled. Control authorities will know in real time what is being moved and where.

It is noted that freelancers and the self-employed have benefited from the tax scale that was introduced in 2019, and more generally from the rules that have been applied in recent years, but their declared incomes have not had a corresponding increase. In particular, the first tax rate is reduced from 22% to 9% for profits up to 10,000 euros, the solidarity fee is abolished, the claim fee is zero (for those who have staff and increased jobs), and the advance tax is reduced. up to 50%. The commission also asks for incentives for those who are consistent and those who want to start an activity and invest in our country.

It is recommended to create a system by which interested parties can know and calculate in advance the tax that arises in connection with their activities, depending on the type of company they choose (advance taxation system).