Plastic money brings changes in transactions and tax discount

Plastic money brings changes in transactions and tax discount

Athens, August 8, 2016/Independent Balkan News Agency

By Spiros Sideris

Everything changes with the bill for the “plastic” money, since, as stated in the newspaper “Ethnos”, the new law provides a barrage of changes that will consolidate transactions with credit and debit cards.

These changes refer to the tax free limit, which will be built only with cards, extra 22% tax on those who do not complete the required amount of spending by card, collection of receipts according to the level of their income, mandatory POS to all enterprises and establishment of a special bank business account which will protect 80% of seizures.

According to “Ethnos”, the key points of the bill are:

1) Tax free limit only with “plastic” money

The indirect tax-free income threshold that will be entitled by employees, pensioners and farmers, which will result from tax reduction, will be guaranteed only by spending on goods and services made by credit or debit or prepaid cards or by using other electronic means of payment.

Payments that should be made via plastic or electronic money will be calculated as a percentage of income.

The higher the income, the higher and the payment rate that should be shown to paid card. The percentage of receipts through plastic or electronic money will be from 10% to 30%, while in the case that this rate is not reached will there be 22% penalty on the tax.

3) 80% of business revenue to be exempt from seizures

This provision of the bill is still pending, and discussions are continuing with the institutions.

4) Special arrangements for geriatric and residents of remote areas

The requirement to produce evidence excludes foreign ministry officials and other employees of the public sector and the military if they serve abroad, those serving at the Greek Permanent Representation to the European Union, those who reside in a nursing home or psychiatric hospitals and prisoners.

5) All businesses are required to have POS

Gradually all businesses will be required to have POS devices to enable citizens to pay with plastic money.