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VAT in restaurants has been reduced by 10%

26 July 2013 / 23:07:46  GRReporter
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On the other hand, the man believes that income concealment is deeply rooted in the majority of the entrepreneurs in Greece. "It is an unwritten rule in Greece that an honest trader is he who conceals less than 15% of his income. We are talking about establishments and restaurants. Imagine that a trader has previously issued 1,000 receipts per year (the figure is indicative and does not meet the actual volumes). If, after the VAT reduction, he presents 1,800 receipts he actually informs the tax authorities that he has been hiding income in previous years. In other words, he himself will reveal that he has been violating the law. Therefore, I believe that the measure could increase turnover and even have a positive impact on pricing, but it will not bring additional revenue to the budget."

The sanctions

The Ministry of Finance is planning to strengthen the controls by introducing much stricter penalties for the offenders. One of them is to close for a week those establishments where the tax authorities have found out that the traders do not issue receipts to all customers. It will become clear early next week whether the punishment for the offenders will take effect.

Tags: EconomyMarketsVATGreeceTavernsRestaurantsCrisis
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