tax evasion

In the draft law on the utilization of public property in coastal areas, a provision is included for the new penal code for any delays in the interconnection of cash registers with POS.

The new severe fines follow a series of previous moves, from September 2023, to prepare businesses (providers and professionals) involved in the project.

During this period and in the period until February 29, businesses have the opportunity to adapt their systems to the new requirements with the ultimate goal of strengthening the effort to deal with tax evasion.

The POS provisions

In particular, with the provisions introduced, the importers, manufacturers and traders of cash registers (tax electronic mechanisms – FIM) are required to ensure the compatibility of cash registers with EFT/POS terminals and the following sanctions are foreseen:

• For those obliged businesses that do not connect their POS terminals with the cash registers within the deadline: A fine of 10,000 euros is provided for if they keep a simple accounting system and 20,000 euros for a mandatory double accounting system. These fines are halved for businesses established in settlements with a population of up to 500 inhabitants and on islands with a population of up to 3,100 inhabitants (except for tourist ones). In case of recurrence within five years, the fines are doubled and for each subsequent violation they are tripled.
• For providers of POS terminals that do not comply with the operation and interconnection requirements with AADE: A fine of 200,000 euros is foreseen and in case of recurrence within five years, 300,000 euros. For those who do not upgrade the terminals of which they are administrators, the declaration of conformity of the terminals they have on the market will be withdrawn and a fine of 100,000 euros will be imposed. If not all of the terminals have been upgraded but only some, a fine of 500 euros is provided for each terminal that has not been upgraded.
• For importers and manufacturers of cash registers: A fine of 10,000 euros and revocation of the suitability license of the cash register model that does not meet the required specifications.
• For providers of commercial/accounting management programs (Enterprise Resource Planning, “ERP”), which have not ensured compatibility with cash registers and POS terminals, fines of 10,000 euros are foreseen, while the documents will be deemed to have been issued by an unauthorized cash register or unlicensed Electronic Invoicing Provider.
• Providers of technical support services for cash registers or management programs, who do not declare their customers, are subject to a fine of 1,000 euros per non-declared customer, unless the infringement concerns less than 15% of customers or numerically less than 10 customers.