Law 5073/11.12.2023 was published in the Official Gazette: Measures to limit tax evasion and other urgent provisions. Some of the main provisions of the law are (part A):
- From 12.11.2023, the use of cash as a method of payment of the price when drawing up notarial acts of transfer of real estate with compelling reason is abolished and the use of bank means of payment becomes mandatory for the payment of the price, for which the Tax Administration is informed by the notary who draws up the deed of transfer through the “myPROPERTY” application.
- The universal application of electronic books (“myDATA”) is defined, in order that the revenues declared do not fall short of the revenues that have been transmitted electronically to the Independent Public Revenue Authority (A.A.D.E.). Furthermore, it is provided that only those costs invoices that have been transmitted electronically to the “myDATA” digital platform are counted as tax deductible. The above provision will come into force with a decision of the Ministry of Economy.
- myDATA fines – Article 8 provides for sanctions and fines for violations of the electronic data transfer obligation (myDATA), in order to ensure its effective implementation. Validity of the provision: From the date of publication in the Official Gazette (11.12.2023); however, according to par. 3 of the new article 54IΓ added to the Tax Procedures Code, it is stipulated that the commencement of application and the entities to which paras. 1 and 2 apply will be upon decision of the Minister of National Economy and Finance after a proposal by the Administrator.
- The time provided for opting for electronic invoicing is extended for the tax year 2024 and sets the end date at December 31st, 2024, in order for entities to choose the exclusive use of electronic invoicing by using the services of electronic data issuance providers. Validity of the provision is from the date of publication in the Official Gazette (11.12.2023).
- The cases of automatic recourse to indirect control techniques are expanded and it is clarified that the relevant reference of article 28 of the Tax Procedures Code is indicative. The need for wider use by the audit mechanism of indirect audit techniques is addressed, through the expansion of the conditions for their application, which are internationally important audit tools for identifying any hidden taxable material and consequently for determining the relevant tax liability. Effect of the provision: The article applies to income earned in tax years 2023 and following.
- It is determined that income from short-term rental of up to two properties by individuals is income from property rental, while in any other case it is income from business activity. Validity of the provision: Effective from 1.1.2024.
- The duration and tax treatment of short-term property leases are defined. In particular, a limit of sixty (60) days is set for the duration of the lease in order to be considered short-term. It is clarified that the limit of sixty (60) days does not concern the duration of the leases within the year, but the duration of each lease separately. Thus, for example, it will be allowed to rent a property for one hundred (100) or one hundred fifty (150) days in the year provided that each separate rental does not exceed sixty (60) days. Validity of the provision: Effective from 1.1.2024.
- It is provided that short-term rentals will be subject to Value Added Tax for legal entities and individuals who own at least three (3) properties for short-term accommodation. Validity of the provision: Effective from 1.1.2024
- The imposition in favor of the State of the resilience fee in the climate crisis is regulated. The resilience fee replaces the accommodation tax currently levied on hotels and rooms for rent. The resilience fee is also charged to short-term leases, while its amount varies, in accordance with the principle of proportional equality, based on both the category of accommodation and the time of year to which it refers. Validity of the provision: The climate crisis resilience fee of article 30 is imposed on special items – climate crisis resilience fee collection receipts issued from January 1, 2024.
- The capital concentration tax rate is reduced from 0.50% to 0.20%. Validity of the provision: The validity of the article covers acts for which the tax liability arises after the publication of the law in the Official Gazette (11.12.2023).
DISCLAIMER: The abovementioned text is a summarized report that does not include important details, not possible to mention here. Our firm remains at your disposal and is ready to assist you in regards to detailed information and application of the new law provisions.