The Independent Public Revenue Authority (AADE) has announced significant updates and initiatives aimed at enhancing tax compliance and efficiency, marking noteworthy changes for Greek taxpayers. One of the most anticipated events is the AADE Christmas lottery, distributing €1.2 million to 12 lucky winners, each receiving €100,000 tax-free.
This year’s lottery not only serves as entertainment but also aims to motivate citizens to engage more actively with electronic transactions. Eligible participants must have made online transactions throughout the year, promoting digital payments as the country moves toward modernization in its tax collection systems. "This year's lottery distributes €1.2 million to 12 lucky winners who will each receive €100,000 tax-free," the AADE reported.
Starting from the beginning of next year, the AADE will implement automated systems for imposing Value Added Tax (VAT) penalties, which range from €250 to €500. This systematic approach seeks to improve the timely reporting and collection of taxes. Traditionally, the process of imposing penalties for late VAT submissions involved significant delays due to bureaucratic procedures, often taking months to inform taxpayers. Effective January, fines will be tagged automatically to late filings, delivering immediate notification to the responsible taxpayer.
The rationale behind this automation is to curb the current VAT revenue deficit, estimated around €3 billion annually, as Greece continues to rank among the lower end within the European Union when it pertains to VAT collection efficiency. According to the AADE, "From the beginning of next year, VAT penalties will be imposed automatically," aligning the country's practices with digital advancements.
Another notable initiative is the issuing of comprehensive guidelines for taxpayers seeking to rectify errors related to tax assessments. Following the release of circular A. 1182/2024, many taxpayers will now have clarity on correcting issues resulting from numerical mistakes or incorrect tax obligations. This circular outlines procedures for contesting unjustified tax penalties and provides citizens with the tools needed to amend their tax records efficiently.
Taxpayers are advised to submit correction requests within three years from the date they were informed of the assessed taxes. The AADE encourages using its digital platform, "My Requests," for streamlined submissions, ensuring swift processing of claims. It's important to note, as specified, "a new circular provides clear guidance for taxpayers to rectify unfair tax assessments." This program exemplifies the AADE’s commitment to fairness and transparency.
These updates serve as part of the broader Strategic Plan 2025-2029 aimed at modernizing Greece’s tax administration, enhancing both compliance and collection. One of the key objectives is to significantly increase the collection rate of VAT from its current levels of 80-85% closer to target levels of near 100% by automatically capturing VAT during transactions.
The AADE's implementation strategy includes the automation of penalties but also envisions the instant collection of VAT at the point of sale for plastic transactions, which will require businesses to adjust their cash management systems accordingly. When fully deployed, these measures are expected to eliminate the backlog of VAT submissions and improve overall revenue flows substantially.
Given the great financial challenges faced by the state amid recovering from economic turmoil, these initiatives may play pivotal roles not only for the revenue system but also instill greater confidence among taxpayers who often feel overwhelmed by tax obligations.
Individuals interested in participating in the Christmas tax lottery and checking their eligibility can refer to the AADE's official website, where results are posted. The measures taken reflect the AADE's commitment to not just taxing but fostering responsible financial practices among citizens.
Through these efforts, the AADE aims to reinforce its operational capacity, ensuring more effective tax management, and contributing positively to the national economic framework.
