On the 13.1.2017 the Regulation of the Finance Deputy Minister Mrs Katerina Papanatsiou was published, determining the expenditure categories which will be assesed given the minimum amount salary employees, retirees and professional farmers must spend, via electronic means of payments for the tax year 2017, in accordance with the provisions of the Law No4446/2016. The Regulation further determines which categories concerning the above-mentioned retirees are exempt from the obligation to use electronic means of payment to carry out their expenditure while they are required to adduce the relevant invoices pursuant to the proposed scale. 

The measure’s objective is to achieve professionals’ and businesses’ tax compliance through encouraging taxpayers to opt in favor of electronic transactions and not to pile extra taxation on those who do not manage to accomplish the minimum amount of expenditure required. For that reason, a combination of reasonable expenditure amounts and relatively limited expenditure categories has been chosen so as not to hamper taxpayers to accomplish their threshold.

The expenses relating to the purchase of goods and services, known as consumer spending, are assessed given the minimum expenditure  amount required, therefore only to the extent they are included in the following categories of the index of consumer prices provided by the Hellenic Statistical Authority (ELSTAT).:

•Group 1 (Foodstuffs, Non-alcoholic beverages,)

•Group 2 (Alcoholic beverages and tobacco)

•Group 3 (Clothing and footwear)

•Group 4 (Housing) excluding rent

•Group 5 (Durable goods, household items)

•Group 6 (Transportation including coastal and airline tickets), excluding expenditure regarding circulation tax and purchase of vehicles, except for bicycles. 

•Group 7 (Communications)

•Group 8 (Leisure, cultural activities), excluding the purchase of vessels, airplanes and aircrafts.

•Group 9 (Education)

•Group 10 (Hotels, cafes, restaurants.)

•Group 11 (Other goods and services)

What needs to be underlined is that Group 6 (Health) as well as the costs related to it are not included since they are subject to the provisions of Law No. 4446/2016. 

Furthermore, expenditure not pertinent to consumption are not encompassed to the above-mentioned indicators. Such indicators are for instance those related to the purchase of domiciles, tax payments, housing loans’ doses and the purchase of investment products (shares, bonds etc.).

The following categories are exempt from the obligation to use electronic means of payment but maintain their obligation to adduce invoices of equal value: taxpayers over 70 years old, people presenting more than 80% rate of disability, people under judicial interdiction and tax payers domiciled within the EU or the EEA (in compliance with provisions of Article 20 of the Law No. 4172/2013) who compulsorily submit their tax return forms in Greece and are taxed according the tax bracket for employees and retirees. The same regulation also applies to the following categories: public officials and civil servants serving abroad, minors with an obligation to submit a tax return form and are taxed according to the tax bracket for employees and retirees, tax payers who permanently reside in villages with a population of up to 500 inhabitants and islands with a population less than 3.100 inhabitants according to the latest census survey, with the exception of tourist destinations, taxpayers having no source of income or taxpayers who can only obtain income on equity or income which derives from capital gains resulting from the transfer of immovable property, provided that their imputed income does not exceed 9.500 euros pursuant to Article 34 par. 1(1) of the Law No.4172/2013, taxpayers registered with the  Greek Manpower Recruitment Organization as regards the variance arising from the comparison between their imputed and total income pursuant to Article 34 par. 1(4) of the Law No. 4172/2013, taxpayers receiving a Social Solidarity Income (SSI), those serving their compulsory military service and those attending long-term hospital care treatment.

The following categories are exempt from the obligation to use electronic means of payment and the obligation to adduce evidence of their expenses: officials of the Ministry of Foreign Affairs, military staff serving abroad, those serving at the Greek Permanent Representation of the European Union, elderly people residing in retirement homes or psychiatric institutions as well as inmates.

Finally, it is further specified that the exact amount of expenses carried out must be declared separately from each spouse or part as for civil partnerships. In case the amount of expenses required is covered by either spouse or part of a civil partnership, any amount in excess, can on liquidation be transferred to the other spouse or the other part of the civil partnership to cover any existing minimum amount of expenses required.

It is also noted that the use of electronic means of payment does not relieve businesses from the obligation to issue receipts.

Source: Ministry of Science, webpage http://www.minfin.gr/news/news/υπουργική-απόφαση-για-τις-ηλεκτρονικές-συναλλαγές 




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