With this practice, they automatically update their customers’ electronic books kept on the myData platform, VAT statements and income tax statements for these operational costs.
Condition
However, in order for these providers to send the account data they issue to the myData platform of their self-employed and self-employed clients, it is a condition that they know this professional status of their clients. Since the providers are not informed by themselves taxpayers for their professional status, when starting the cooperation with them, they do not send the account data to the myData platform.
In many cases, the information must be provided by the taxpayers themselves when signing the service contracts with the service providers. If it is done, then the process of updating the myData platform and the VAT and income tax returns with the amounts of these taxpayers’ expenses for electricity and telecommunications is done automatically every time the bills are issued and before they are even paid!
The submission of the data of the electricity and telephone bills to the myData platform, which is used by many companies providing these services, at the time of the issuance of these bills, contributes to the pre-filling of the VAT and income tax returns of their self-employed customers with the correct data of the of their specific operating expenses and ultimately ensuring the deduction of the amount of these expenses from their gross income.
In the VAT declarations, the expenses for electricity and telephone charges are pre-populated by the AADE – updated via the myData platform – as inputs and the corresponding VAT on the specific accounts is pre-populated separately by the AADE for deduction from the VAT of the outputs (income) of the businesses and professionals, making it significantly easier for them, as it entitles them to specific discounts.
In the income tax returns, electricity and telecommunications expenses are automatically transferred, from the updated through the myData AADE platform, to other expenses and it is now up to the entrepreneur or self-employed person to accurately classify them in order to be included in the form’s operating expenses table E3 and in the individual codes of this form, where the amounts of these expenses are filled in separately, i.e. separately for electricity and separately for telecommunications.
Essentially, the electricity and telecommunications provider companies, whose clients are the self-employed and freelancers, automatically inform the AADE of the electricity and telecommunications expenses of these taxpayers, by posting on the myData platform the data for the bills they have issued, such as these accounts were supplier invoices. Thus, the amounts of the accounts automatically increase the total amount of expenses in the electronic summary books kept by the taxpayers in question on the myData platform.
It’s coming to an end in practices tax evasion of the past
With this automatic update by electricity and telecommunications providers, these taxpayers can no longer declare electricity and telecommunications expenditure amounts higher than those posted on the myData platform.
This puts an end to the tax evasion practices of the past, such as the declaration of “inflated” operating expenses in the books of companies, much of which were non-existent. This practice had the purpose of deducting a large amount of expenses from the gross income, reducing the net taxable income to low levels and ultimately avoiding paying the actual amounts of VAT and income tax.
On the other hand, many sole proprietorships now reserve the right to deduct the VAT of all these accounts from the VAT of their income, but also to deduct the net amounts of these expenses from their gross income after, of course, making the required reforms , in cases where the residence of the taxpayer is declared as the seat of the business activity.
Submission is automated of VAT returns
The Independent Public Revenue Authority (AADE) is now proceeding with the complete automation of the process of completing and submitting VAT returns.
The ultimate goal is for all VAT returns not only to be pre-filled and posted ready for submission to the taxpayers’ accounts in the TACHISnet system, but also to be submitted automatically by the AADE itself on behalf of the taxpayers, as long as they have not submitted them within the stipulated time deadlines. In this way, the phenomena of non-submission of declarations or late submission of declarations will be completely eliminated.
The “steps” that have already been taken in this direction are the complete pre-filling of the VAT returns for more than 1,000,000 entrepreneurs and self-employed professionals, which is done from 1-1-2024 based on the data of the tax information transmitted by the taxpayers on the myData platform and the establishment of margins of deviations downwards for declared income and upwards for declared expenses, which are gradually reduced until they are completely zero.
From 1-1-2025, VAT declarations will no longer allow downward deviations for income and upward deviations for expenses, in relation to the corresponding data that will have been transmitted to the myData platform.
The final “step” that will be taken in the VAT returns will be their automatic submission by the AADE on the final dates on which the respective deadlines expire, since by these dates the taxpayers themselves will not have submitted them. This final stage of full digitization and automation of the procedures for filling out and submitting VAT returns is scheduled for the end of 2026 at the latest.
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