Digital Transformation in Taxation: Greece Expands POS Terminals and Revamps Freelancer Taxation

POS Terminal

Expanding point-of-sale terminals (POS) to encompass all economic sectors is a top priority for Deputy Minister of National Economy and Finance Harry Theoharis and the head of the Independent Authority for Public Revenue (AADE), Giorgos Pitsilis. Simultaneously, the Ministry is preparing for revisions to the taxation of freelancers and self-employed individuals, contemplating implementing a novel set of objective criteria.

Regarding the decision on POS, it is anticipated to be finalized before the end of the year, with Minister Kostis Hatzidakis emphasizing the necessity for prompt implementation. He stressed that combating tax evasion cannot rely solely on goodwill and noted that the surge in electronic transactions has significantly curbed tax evasion. Reducing it further will enable the government to lower tax rates.

The forthcoming directive, being developed jointly by AADE, the Ministry, and the Ministry of Development, will encompass various sectors mandated to employ POS systems. By the end of the year or early January, businesses such as taxis, cinemas, open-air markets, kiosks, groceries, insurance companies, fairground stallholders, brokerage firms, concert venues, and events will be required to have POS terminals. More sectors are expected to be added, and professionals without existing cash registers, like tailors, will be obliged to acquire them.

Minister Hatzidakis also disclosed that freelancers must connect their cash registers to POS, link their business accounts to the IRIS direct payment system, and accept direct payments from individuals upon request.

The plans for the new objective criteria, which will determine one's actual income, are focused on freelancers and self-employed individuals. An algorithm will consider the professional's earnings, expenditures, and living costs, including bills such as electricity, rent, card transactions, fuel, and taxes paid.

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