Heavy penalties for tax evasion with business closures lasting up to 24 months for tampered cash registers are outlined in a new AADE (Independent Authority for Public Revenue) decision, which targets electronic invoicing and software providers for the first time. At the same time, all loopholes for avoiding sanctions through company changes or business transfers are being closed, while under the new regime, penalty enforcement no longer depends exclusively on the number of receipts not issued, but also on their value.
Tax evasion: When business closure is imposed even for just one receipt
Specifically, if the concealed value exceeds 500 euros, sanctions are triggered regardless of the number of documents. It’s noteworthy that even just one receipt can lead to business suspension, while the same logic will apply to non-transmission of data to AADE’s information system.
What the AADE decision provides
In this context, the decision provides for:
– Business suspension for 48 hours on the first serious violation,
– 96 hours in case of repetition within the same or following tax year,
– Closure for 10 days for new recurrence within two tax years.
Electronic invoicing and software providers targeted for the first time
For the first time, electronic document issuance service providers, software and hardware companies, technicians or companies providing support for illegal interventions are explicitly included in the sanctions framework.
Business closures up to 24 months as provided by the new decision
According to AADE:
– Businesses using tampered systems face suspension from 2 to 12 months,
– Software companies or technical support firms involved in such practices can be punished with closure from 3 to 24 months.
End to loopholes through company changes or business transfers
The new decision also attempts to prevent practices of avoiding sanctions through changing legal form or transferring the business. Now, even if the business entity changes, operations are discontinued, or a new corporate structure is created, suspension can be imposed normally, provided the same activity continues, operates in the same location, and involves the same or connected persons.
The decision introduces a more detailed procedure for notifying findings and executing suspension decisions. Specific deadlines before implementing closure are also established to ensure the audited party’s hearing process.
