The three-day Whitsun holiday will mark the start of the major summer inspection campaign by auditors from the Independent Authority for Public Revenue (IAPR) at tourist destinations across the country, aimed at ensuring tax compliance.
This summer’s plan is described as the most ambitious in recent years, as the goal is to further narrow the gap with the rest of Europe regarding VAT losses, thereby paving the way for more permanent tax relief starting in 2027 and beyond.
Of the total of approximately 50,000 tax audits provided for in the AADE’s central plan, at least half will involve on-site inspections.
The audits will be anything but “blind” and “random.” Targets have been selected based on risk analysis, with the help of an Artificial Intelligence algorithm.
Although the criteria are not made public, according to reports, all data sent from POS terminals to the AADE is cross-referenced with data from order-taking platforms, along with comparative turnover and VAT revenue figures by sector as derived from myData, etc.
Another valuable “tool” is the “blacklist” of violators, which is updated annually; the goal is to increase self-compliance by re-examining these cases.
The targets
Restaurants, cafes, entertainment venues, car and motorcycle rental offices, paid parking lots, day cruises, local hair salons and wellness centers, and accommodations of all types are the obvious top-priority targets, where non-compliance is at an all-time high.
The conduct of some on-site inspections will be supported by the use of the digital app ELEGCHOSlive, which allows immediate access to the taxpayer’s profile and issues an electronic violation report. As for the areas where the focus of the audits will lie, the islands will take center stage, where, according to data from the Tax Authority, approximately 40% of businesses operate in the “gray” zone.
The control center
The plan calls for real-time coordination of audits from the AADE Operations Room, where information, photos, and videos from the raid sites will be continuously relayed. In the most demanding cases, drones will even be used, flying over the targets and transmitting real-time footage to the tax “commandos” before the raid.
At the same time, the plan includes surprise “undercover” inspections, with tax officials posing as tourists in stores and businesses to verify whether retail receipts are being issued or if POS systems are connected to cash registers and myDATA.
More specifically, during the inspections:
- Compliance with tax obligations, bookkeeping, and the issuance of tax documents will be checked.
- Information regarding taxpayers’ conduct will be recorded, entered into the system, and utilized to facilitate further actions by the Tax Administration, with the ultimate goal of identifying concealed taxable income for taxpayers engaged in any activity or trading in goods.
The “padlocks”
Violators of tax laws will face not only fines but also the closure of their stores:
- Immediately for 48 hours, if it is determined that more than 10 required sales receipts were not issued or were issued inaccurately, based on the same audit, or, regardless of the number, the net value of the goods or services for which sales documents were not issued or were issued inaccurately exceeds 500 euros.
- Without delay (within 96 hours), provided that, within the same or the following tax year following the findings of the aforementioned case, it is again found at the same or another business location of the taxpayer that at least 3 sales receipts were not issued or were issued inaccurately, as determined by the same audit, regardless of their value.
- Immediately for 10 days, each time within 2 tax years it is found that at least 3 sales receipts have not been issued or have been issued inaccurately, as determined by the same audit, regardless of their value.
- In any case of violation of the suspension of the business premises’ operation, i.e., breaking the seal that has been imposed, an additional suspension of operation for 10 days shall be imposed each time.