FINES FOR THOSE WHO DO NOT ACCEPT CARDS

 Filenews 1 September 2020 - by Eleftheria Paizanou

Financial penalties of up to €2 thousand will impose the Tax Department on companies that do not comply with the obligations in relation to the acceptance of a credit card as a means of payment.

Under the law passed a month ago by the House, persons engaged in economic activity are required to accept from consumers in addition to cash payments and credit cards.

It is worth noting that a decree is expected to be issued, specifying the companies that will have the obligation to install a terminal and accept payments with credit cards as well.

In a circular issued by the Tax Commissioner, Giannis Tsagaris, he makes it clear that after the adoption of the relevant decree, appropriate checks will be followed by the Department on businesses to determine whether the legislation is being implemented.

As noted in the circular, in the event of an infringement by the company, the official is obliged within five working parties to report to the Tax Commissioner who within 15 days will have to decide whether to impose an administrative fine, which can reach up to €2,000.

In fact, if the infringer fails to pay the fine, then the Tax Commissioner takes legal action and collects the amount due as civil debt due to the Republic.

It is worth noting that violators can file an objection with the Tax Commissioner within 30 days.

The decision on the objection shall be given within one month, while the decision on the objection shall be subject to appeal to the Administrative Court. According to the circular, the administrative fine is reduced in half when the infringer pays the fine or submits to the Tax Commissioner an invoice proving the purchase of a payment card acceptance terminal and payment instruments within 30 days. Under the law, due to card payments or other electrical means of payment, a public lottery programme will be implemented for the purchase of goods or services involving persons making electronic payments.

In the meantime, according to the circular, the electronic submission of the tax return should be made by 31 July of the year following the tax year. At the same time, the obligation to file a tax return regardless of income will apply from the fiscal year 2020, i.e. from next year. At the same time, the Council of Ministers by decree will determine the criteria by which natural persons with gross incomes up to €19,500 will not be required to file tax returns. In addition, under the law, taxpayers filing tax returns can file a revised tax return for any tax year within three years.

Moreover, for tax years before 2020 revised declarations will be timely if submitted within six months of the day the law was implemented (20 August 2020). Finally, no credit balance (tax) will be refunded to a taxpayer who has failed to fulfil his obligations by the end of the tax year, while the Registrar may suspend his payment until the taxpayer has fulfilled his tax obligations. Until the taxpayer repays his debts, no interest will be paid to him.