What does the mandatory interconnection of cash registers and POS bring – The road map

2023 is of pivotal importance for the tax administration, since the strategically important project of connecting cash registers with POS is expected to be implemented, while it is estimated that the mandatory installation of POS will be decided in almost all branches of self-employed professionals and businesses.

At the same time, AADE proceeded to issue instructions so that the relevant procedures for the implementation of the project could run faster. At the same time, taxpayers should send to AADE and myDATA the tax data they issue in real time or at least immediately.

In practice, this means that upon completion of the project, a business or freelancer will not be able to charge a customer via POS without first issuing a receipt from the cash register.

The aim is to implement the interconnection project next spring and in this way to close a large window of tax evasion that exists in the Greek economy. Besides, as the Ministry of Finance officials note, with the actions of the government, the VAT gap has shrunk, i.e. the loss of tax revenue, but it still remains at a high level based on European data.

The VAT gap amounted to 3.2 billion euros based on the Commission’s data and as Finance Minister Christos Staikouras had emphasized “this is an important development, with a direct and substantial impact on state revenues, on the strengthening of tax awareness, on the increase of competitiveness of businesses, in strengthening tax justice and social cohesion and above all, in ensuring the conditions for an even lower overall tax burden on citizens”.

At the same time, the minister had emphasized that “it is proven that the government’s efforts to fight tax evasion, the digitization of the economy, the intensification of controls and the promotion of electronic transactions, combined with the significant reductions in taxes and insurance contributions, are bearing fruit. Tax compliance is increasing. The VAT gap is shrinking. Whereas, the European Commission recognizes the substantial, non-contemporary, progress that has been achieved in strengthening the effectiveness of the VAT system”.

Recently, with the decisions of the AADE commander, Giorgos Pitsilis, the technical specifications for two new types of Tax Electronic Mechanism (FEM) are determined, while the interface specifications between cash registers and POS are updated.

With the new specifications, the accuracy of the data transmitted to the AADE is ensured, the encryption in the communication between the two devices is improved and the way of handling possible failures either in the FIM or in the connection infrastructure of the two devices.

The interconnection of the cash registers with the POS and electronic systems of AADE will be another weapon in the battle against tax evasion as it will enable the tax authorities to have a complete and real-time picture of the amount and time of issuing retail receipts of sale as well as the method of payment and thus identify cases of concealment of turnover and non-return of VAT.

With the new system, payment card acceptance terminals (EFT POS) will not be allowed to operate autonomously for debit transactions, i.e. for card payments, the payment amount will not be allowed to be entered by typing in the POS but the amount will come out of the cash register machine.

Let’s see in detail and step by step how the new system will work:

• The transaction starts from the Tax Electronic Mechanism (FEM), i.e. the sophisticated cash registers for retail transactions. The operator (employee or shopkeeper) selects “card payment” and the FIM sends a relevant request to the EFT/POS card payment system.

• The EFT/POS system automatically confirms receipt of the request to the Tax Mechanism, placing it on hold for the result.

• The POS connects to the Payment Service Provider (bank or equivalent payment service) and receives information if there has been (a) “online approval” or (b) offline approval or (c) offline rejection or (d) interruption of the transaction.

• The EFT/POS system responds to the FIM with the final result: rejection or approval. In addition, at the same time as the approval, it also sends the basic details of the transaction (such as transaction number, approval code, etc.) but also data for printing the receipt by the FIM, if it supports it.

• The Tax Mechanism – FIM confirms receipt of the final result. In the event that this confirmation, for any reason, is not documented by the EFT/POS system, then the EFT/POS creates a relevant marking for the non-processing of the transaction by the Tax Mechanism.

At the same time, a decision by the Ministry of Finance and the AADE foresees improvements and time “respites” for more than 1.3 million businesses and freelancers for the transmission of transaction data on the myDATA digital platform.

Specifically:

1. Transmission time to myDATA via ERP: From April 1, 2024, the transmission of the summary of documentary transactions via business management programs (commercial/software, ERP) will be done in real time. From July 5, 2022 and until December 31, 2023, the transmission of the summary of documents through business management programs (commercial/software, ERP), is foreseen within the next day from the date of issue of the document. Exceptions are provided for companies with a very large volume of transactions and special conditions for issuing their documents.

2. Time of transmission to myDATA via the Registration Form: For the year 2023, businesses using the registration form are required to transmit their document summaries within the next day from the date of issue. As an exception, businesses that in the previous tax year had a gross income of up to 10,000 euros can transmit the relevant data through the special AADE registration form until the 10th day of the following month in which they are issued.

3. Cash registers: The obligation to transmit the characterization of retail revenues issued by cash registers through the FIM information system is postponed to April 1, 2023. Until March 31, 2023, the relevant data is still transmitted via business management programs (accounting ERP) or the special AADE e-send registration form.

4. Electronic invoicing: The adjustment stage to issuing documents exclusively with electronic invoicing through a Provider is extended to six months, for all businesses that choose this way of issuing and transmitting documents. This possibility concerns wholesale transactions with other obliged enterprises as well as transactions with the State, in the context of public contracts.

5. QR code: It is possible to have a QR code in accounting data issued using business management programs (commercial ERP).

6. Fishermen: It becomes optional for fishermen who are included in the special VAT regime to submit data to myDATA, for the years 2021 to 2023.

RES-EMP

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