28/07/23

REGULATION: Amazon joins tax battle too

As published on: ekathimerini.com, Friday 28 July, 2023.

The supply of data to tax authorities from digital platforms on the sale of goods and services has already been implemented in Greece in recent years. In fact, the Independent Authority for Public Revenue (AADE) has entered into agreements with delivery companies and receives quarterly transaction data, while collecting data from short-term rental platforms such as Booking.com, Vrbo and Airbnb.

That model is being extended to cross-border transactions, with tax authorities receiving data as part of the exchange of information. For example, Amazon should send the data of the Greek businesses that collaborate with the platform to the country where it is headquartered and then this data will be received by AADE.

According to information, the Ministry of National Economy and Finance and AADE are considering moving one step ahead of the rest of the EU countries. The Greek legal framework gives the tax administration the flexibility to ask all digital platforms for transaction data in order to cross-check whether declared incomes are in line with sales.

In other words, in addition to the delivery companies, it is extremely possible that large digital platforms for the sale of goods and services, such as Skroutz, Douleutaras etc, will be forced to send information to the tax authorities, which will be cross-referenced with that declared by the companies and professionals cooperating with them. In fact, if deemed necessary, AADE can request the data either quarterly or monthly.

Tax evasion in Greece, which reaches 40 billion euros per year according to a Eurobank study, can be significantly reduced, ministry sources say, as the tools now exist to detect tax evasion and tax fraud.

Tax authorities will begin to exchange information declared by digital platforms on a European level. Therefore, with the new provisions, the cooperation between the tax authorities of EU states will be strengthened. Audits will also be facilitated, to identify incomes obtained through digital platforms active in areas such as property and transport leases, provision of personal services, sale of goods etc.

Tags

Regulation Amazon Tax Authorities Tax Transparency