Small firms to get VAT payment exemption
The Finance Ministry is promoting a plan for the exemption of small and medium-sized enterprises and selfemployed professionals with annual gross revenues below 20,000-25,000 euros from having to pay valueadded tax.
The regulation, which would raise the exemption cap from 5,000 euros per year, will be included in one of the bills to be submitted in Parliament after July 15, although some ministry officials have expressed concerns about the final threshold level, saying 25,000 euros is too high.
This regulation in effect incorporates a proposal by the International Monetary Fund, which had asked for the exemption of small enterprises from VAT payment. Some 42 percent of those taxed in the VAT system are small enterprises that end up getting more in tax rebates than they pay in VAT.
Ministry sources say that the new income tax code will be put up for public consultation next week, followed in two weeks’ time by the new tax procedure code.
While tax officers today continuing a 48-hour strike launched yesterday, the Finance Ministry has granted a two-month extension to this Sunday’s deadline for the electronic submission of income tax declarations for the 2012 financial year.
The ministry has opted for staggered deadlines depending on the last digit of each taxpayer’s tax registration number (AFM). Therefore the ministry is asking for people whose AFM ends with the number 1 or 2 to submit their declarations via the TAXISNET system of the ministry’s website (www.gsis.gr) by July 22. Taxpayers with an AFM ending in 3 or 4 have a July 29 deadline, those that end 5 and 6 must submit declarations by August 5, those ending in 7 and 8 by August 12, those in
48-hour strike, which is set to conclude today. 9 by August 26, and those in 0 by August 30.
It must be noted that all declarations submitted before August 30 will be considered to be on time, but the ministry has set staggered dead-
yesterday were turned away disappointed, as employees started a lines in order to avoid a system failure in the last days of August. However, while taxpayers who submit their declarations by end-July will be able to pay their tax in three installments, those who send them in August will only be able to do so in two.
So far, no more than 500,000 taxpayers out of a total of 6.5 million have submitted their declarations for 2012.