The establishment of a special control unit that will “scan” all e-shops conducting cross-border sales to identify cases of VAT non-compliance is provided for in a decision by the head of the Greek Tax Authority (AADE), Giorgos Pitsilis. At the same time, small businesses exempt from VAT are placed under stricter supervision with checks on turnover limits and legal inclusion or remaining in the special regime to prevent abuse.
As stated in the decision, the initiative is part of efforts to modernize the tax administration, as the increase in cross-border internet transactions and the need to control new forms of business activity require a stricter supervisory framework. The new sub-directorate consolidates responsibilities related to registry management, transaction reporting, special VAT regimes in e-commerce, and the special regime for small businesses.
The role of the Central Tax Office for Large Enterprises (KE.FO.D.E.) is also enhanced in monitoring declarations, cross-referencing data, issuing tax assessments and penalties, and serving and informing taxpayers. Based on the decision, to strengthen controls and more effectively serve taxpayers, KE.FO.D.E. Attica is organized into the following three basic sub-directorates and special support units.
1. Sub-Directorate for Transaction Reporting and Special VAT Regimes: Consolidates responsibilities related to the tax registry, bookkeeping and documentation requirements, and special VAT regimes applied in e-commerce and small businesses, such as tax registry management (issuing tax numbers, starting and changing business activities), bookkeeping and issuing tax documents, special VAT regimes in e-commerce (OSS, IOSS), and the special VAT exemption regime for small businesses. This particular sub-directorate has an increased role in monitoring e-shop activities and cross-border transactions within the EU, as well as controlling the prerequisites for businesses’ inclusion in VAT exemption regimes.
2. Sub-Directorate for Indirect Taxation: Covers VAT, duties and other special taxes, such as those related to vehicles. Its responsibilities include checking VAT returns, verifying data, imposing taxes and penalties, and handling taxpayer requests. Within this framework are also procedures such as vehicle immobilization declarations, which are now processed through AADE’s digital applications.
3. Sub-Directorate for Direct Taxation: Responsible for income tax matters of individuals and legal entities, as well as special taxation categories, such as ship and maritime business taxation. It monitors taxpayer compliance regarding declaration submissions, checks data accuracy, and performs data cross-referencing based on AADE’s risk analysis tools. Additionally, it handles applications for inclusion in special alternative taxation regimes that mainly concern transfer of tax residence to Greece. Its responsibilities also include issuing tax assessment and penalty acts.
