Electronic transactions: Cards brought in an additional 500 million

Electronic transactions: Cards brought in an additional 500 million
Electronic transactions: Cards brought in an additional 500 million

More than 500 million euros will be added to the state coffers this year from the increase of electronic transactions. According to his data Ministry of Financeonly the increase in electronic transactions, that is, without taking into account the good course of tourism, leads to its limitation tax evasion and by extension to the increase of public revenue. At the same time, there is a strong possibility of expanding POS and cash registers throughout the economy. However, there are two trends within the Ministry of Finance, namely some who push for their expansion and others who fear the political cost. In fact, it has been proposed to reduce the limit for the use of cash in both consumer and business-to-business transactions. Today the limit is 500 euros. That is, above this amount, transactions between individuals – consumers and businesses (for the sale of goods or the provision of services) should be made exclusively using card or other electronic means of payment.

According to the data available to the Ministry of Finance, electronic transactions have led to an increase in VAT revenues and a reduction in the circulation of “black” money. In fact, financial staff members estimate that this amount will increase significantly with the interconnection of cash registers with POS from 2023, but with the obligation to transmit transactions (receipts) from the end of October to AADE. For those who do not do so, in fact, steep fines and suspension of the operation of the business for up to 96 hours are foreseen.

Based on the ministry’s data, electronic transactions compared to 2019 have increased by 62.5%. Particularly:

• In 2019, purchases with cards or other electronic means reached 40.6 billion euros.

• In 2020, when the pandemic crisis appeared, at 44.7 billion euros.

• In 2021, with the economy closed for 5 months, electronic transactions reached 53 billion euros.

• In 2022, they are estimated to increase by 25%-30% and reach levels of more than 65 billion euros.

According to statistics, private consumption last year reached 125 billion euros, which shows that half of the transactions, i.e. 50%, are made with cards, while in other countries it is 80%.

The Ministry of Finance is considering the possibility of expanding POS and cash registers throughout the economy.

With the expansion of POS in all economic activity it is estimated that this percentage will increase significantly. For example, today there is no obligation to have a POS in gyms, parking lots, which in fact do not have an obligation to maintain a cash register. That is, those who wish to use the handwritten system. There is also no obligation for POS at kiosks, taxis, cinemas and theaters, among others. It is noteworthy that even today there are professions that do not use cash registers in the services they offer, for example, tailors.

Although before the pandemic the plan of the Ministry of Finance envisaged the expansion of POS to the entire economy, this has weakened and, as an agent of the Ministry of Finance states, “the time has come to expand it to the whole of economic activity”.

The OPEKA allowance is on the card

The OPECA allowance will be granted on a card, from which beneficiaries will only be able to withdraw 50% in cash. The remaining amount should be spent online i.e. by purchasing through POS, e-banking etc.

As reported by the Ministry of Finance, the total allowances amount to 3 billion euros. The aim is for at least half of them to be spent by debtors through electronic transactions.

Tax compliance

New technologies and the increase in electronic transactions have also led to business compliance. At the same time, now those businesses that are not tax aware (and in order to be, they must not owe the Greek State) cannot join programs such as the NSRF, as well as any aid program. According to the latest available data, VAT payments from businesses to the tax office show a significant increase. In particular, in July, timely payments reached 85.19% of the total VAT due.

In particular, out of the 1.368 billion euros in VAT, an amount of 1.164 billion euros was paid on time by the debtors. On-time payments of corporate income tax reached 90.38%, while the figures for ENFIA payments (compared to previous years) are also particularly positive, showing an increase to 77.59%, from 73.9% at the end of 2021.

The article is in Greek

Tags: Electronic transactions Cards brought additional million

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