The Ministry of National Economy and Finance has definitively withdrawn the provision that would have made electronic payments compulsory and removed cash from courier deliveries. The decision followed not only the legal and practical issues the measure would have raised, but also opposition from market bodies during the consultation.
The controversial provision — included in the omnibus bill now heading to Parliament — stipulated that any purchase delivered by a courier company and paid for on receipt would have to be settled exclusively by electronic means, regardless of the amount. The aim was to further expand electronic transactions and curb tax evasion.
In practice, however, the measure sparked opposition because it created two different payment regimes for exactly the same purchase: one for in-store purchases and another for online purchases paid for by cash on delivery. Under the current rules, consumers can buy goods worth up to €500 from a physical shop and pay in cash.
Cash on delivery and cash
Under the withdrawn provision, if the same product were bought online and delivered to the consumer’s door by courier, cash would not be allowed, even for a purchase worth just a few euros. This unequal treatment was at the heart of the objections raised during the consultation and was the main reason the provision was shelved.
For the record, the measure did not abolish cash on delivery as a payment method. Consumers would still have been able to choose to pay for their purchase when it arrived. What the provision would have removed was the option to pay in cash.
In other words, payment would have had to be made exclusively by card or another electronic means, with no minimum transaction limit. Even a parcel worth €10 or €20 would have been subject to the same rule. Courier companies accepting cash would also have faced a fine equal to twice the value of the transaction.
The provision drew the strongest opposition because it conflicted with the general rules on cash transactions. Cash is currently allowed for transactions between businesses and private individuals of up to €500. A product worth €200 can therefore be paid for in cash at a shop’s till. But if the same purchase were made through an online shop and delivered by courier, cash payment would be prohibited.
Hit to turnover
If the provision had gone ahead for a vote, the impact on courier companies’ turnover, employment and e-commerce would have been substantial, according to figures cited by most businesses in the sector. Cash on delivery accounts for more than 40% of online purchases, with annual transactions worth €3bn-€5bn, of which 70%-75% are settled in cash.
They also note that “Greece already has the lowest cash-payment limit in the European Union (€500), twenty times lower than the EU-wide limit (€10,000). By way of example, the limit is €1,000 in France and Spain, €3,000 in Belgium and the Netherlands, and €5,000 in Italy, while no national limit applies in a number of member states, including Germany, Austria, Ireland, Luxembourg and Finland.
As far as we know, no other member state bans cash on delivery, and the proposed measure would have made Greece the only country in the European Union with such a restriction,” they note.
They also complained of unequal treatment, as cash payments would be allowed in physical shops but not for courier deliveries. They even proposed a blanket restriction on cash across all retail transactions, including lowering the general limit from €500 to €300.
Relief through 120 instalments
Meanwhile, the new 120-instalment plan for debts owed to the tax authority and social security funds is moving ahead unchanged for a vote. It offers relief to more than 1 million households, professionals and businesses with old debts — accumulated by the end of 2024 — totalling more than €95bn.
The new framework provides for more instalments over a ten-year period and a wider scope, allowing debts that fell due by 31 December 2024 to be included. It also gives around 35,000 debtors already in the 72-instalment plan the option to apply to transfer to the new scheme.
The main advantage of the 120-instalment plan is a reduction of up to 40% in monthly payments, while the minimum instalment is just €30. The interest rate is, however, a major sticking point for businesses: the principal debt will accrue interest at a fixed annual rate of 5.84%, increasing the total amount debtors will have to pay over ten years.
Debts to the AADE and social security funds that fell due by 31 December 2024 can be included in the new plan, extending its scope compared with the previous 72-instalment scheme, which covered debts due by the end of 2023. However, debts included in the new plan must not have been subject to an active repayment arrangement on 30 September 2026.
Applications must be submitted online by 30 June 2027. Inclusion in the plan takes effect when the first instalment is paid, which must be done within three working days of submitting the application. Subsequent instalments are due by the last working day of each month.
The application platform is expected to open by mid-November.