Tax evasion on the mainland
Which Greek regions are seeing a rise in dodging and which are showing increased compliance
The increased inspections by the tax administration on the Greek islands have led to a notable reduction in tax evasion, but on the mainland the failure to issue receipts and report revenues to the tax office is growing.
It seems that tax evasion has been transferred to continental Greece, and especially at restaurants, coffee bars and retail stores, led by the Peloponnese, which attracts many tourists, both Greek and foreign.
The failure to issue a receipt is not the exception there but the norm, with restaurant owners presenting customers with order slips instead of receipts, while customers are often accomplices. Specifically, in the event that the amount to be paid amounts to 50 euros, a discount of €5 is made without a receipt. So the owner is spared the VAT, while the income goes into his pocket tax-free.
Even if all flagship measures are fully operational (interconnection of cash registers with POS, e-books etc) and contribute to the effort to limit tax evasion, they do not catch the non-issuance of receipts.
On the contrary, a climate of tax compliance seems to have taken hold on the islands, as the summer visits by auditors and the lockouts have spooked shopkeepers. Last year there was a record number of forced closures on islands such as Andros and Paros. This year early evidence shows that receipts are being issued on these two islands.
More problems emerge in the open farmers’ markets: The squads of the Ministry of Development (DIMEA) have disappeared. DIMEA is the competent authority for carrying out inspections, certifying violations and imposing fines. For example, at a market in Papagou, northeastern Athens, when a customer asked to pay by card, the seller claimed that his POS was not connected to the cash register as the tax office is delaying the procedures, and therefore customers have to pay in cash. Perhaps if the producer had to have a sign like the one in stores stating that customers are not required to pay unless they receive a receipt, it would help.
