VAT return in installments but only for the “punctual”…

The government is promoting “handcuffs” for tax evaders, a new directorate of audits and a strict evaluation system of tax officers. According to a new regulation, businesses will be able to pay VAT in 3 installments. The difficulties arise for those who owe to the State and wish to compensate sums with other debts of the State to them.

In a TV interview, the Finance Under Secretary Dimitris Kouselas laid out the essence of the promoted changes.
 
“Tax evasion” will be considered a lasting crime

The law against tax evaders gets even stricter, resorting to the courts becomes more expensive, while the legal difficulties relating to arrests and the in flagrante procedure are ironed out; through the harsh regulations of the new law, evasion will be dealt with as a lasting crime so that the SDOE Rambos will be able to make on-the-spot arrest. Kouselas made clear that “we can’t imprison someone for a 1-euro tax evasion” but stressed that there is a provision for jail time even for a "1-euro VAT evasion".

According to sources, those arrested for VAT evasion will have to pay it first in order to redeem the charge. At the same time:

* The advance of the assured tax to be paid by the taxpayer in order to be able to resort to a Tax Court is increased from 25% to 50%.
* The position of Tax Ombudsman is created for faster resolution of disputes with the Tax Office.
* The institution of the Finance Prosecutor is introduces to forward evasion cases directly.
* A new mechanism of tax officer evaluation is established.

VAT in installments

The Finance Under Secretary confirmed that they are preparing a regulation of VAT payment in 3 monthly installments with 40% up front and 30% each month (or 30% and two installments of 35% plus a surcharge of 1% each month) as long as offenders don’t have a suspicious past.

But the plan is encountering difficulties in terms of compensating the sums of business debts to the state with returns owed to offenders by the state. The aim is to submit the legislation in February along with the tax bill, and the basic principle will be that the compensation of sums will take place tax for tax and not by combining other company debts with state-owed returns.
 
VAT Tax Return

However, Kouselas prepared the ground for an immediate VAT return upon invoice issue to those dealing with the state :  “Our aim is to take certain measures. Regarding VAT, we are discussing issuing an invoice for the suppliers of the state at the time of their reimbursement by the state, to avoid this gap. If we can put this into practice for an important percentage of the debtors involved in debts of the state to businesses that deal with it, then this gap will cease to exist”.

The compensation of sums will not be extended to other debts towards the State, such as the debts towards insurance funds.