GREECE: New Greek Tax Crackdown Targets Freelancers and Boosts Compliance

The Greek Finance & Economy Ministry and the Independent Authority for Public Revenue (AADE) have reported significant progress with new tax measures aimed at freelancers and independent business owners.
These measures include a new presumed income taxation method and mandatory linking of cash registers with POS machines, which have already proven effective in reducing tax evasion.

Many freelancers, some of whom reported incomes as low as €300 per month, are the primary focus of these changes. The government intends to tighten compliance further by eliminating discrepancies between declared income and expenses through the myDATA platform. Upcoming measures include stricter inspections to ensure cash registers are linked to POS devices, accepting payments via the IRIS system, and implementing a digital clientele list.

One key tax evasion tactic involved declaring excessive expenses without receipts. This practice will be phased out starting January 1, 2025, with a gradual reduction of allowable deviations between declared and verified expenses beginning October 1, 2024. During this transitional period, the cap on discrepancies will be reduced to 5%, down from the current 10%-20%.

From 2025, only expenditures entered into the myDATA system will be recognized by tax authorities to reduce gross income, ensuring declared incomes align with actual transactions. Additionally, the introduction of a digital clientele list will help prefill VAT declarations and further reduce potential state revenue losses. This system is expected to be applied to specific professions, including car services, event planners, private schools, clinics, doctors, and lawyers, thereby making it harder for professionals to hide income.

Authorities note that the VAT gap has already shrunk by €3 billion, largely due to increased electronic transactions and payment monitoring, indicating the effectiveness of these digital reforms.