2024 is expected to be a landmark year in terms of tax administration, since, barring a shocking prospect, the interconnection of cash registers and POS machines with the Taxisnet system will be implemented, which will significantly change the way the market operates and of course it will make the work of the tax administration easier.

But it is not the only thing that will change the tax routine of businesses and professionals.

Another important change is the pre-filled VAT returns, which means that income and expenses will be locked in from now on. No professional will be able to declare less income, nor more expenses than those that have been entered into MyData. What does this mean practically? That electronic books are now absolutely mandatory and anyone who does not go through the system will face serious problems in their daily life, but also in their relationship with the tax authority.

The third axis is the controls that are expected to intensify in the next period of time and to be more targeted at professional categories with a high tax interest.

No more extensions for cash registers

In the Ministry of National Economy and Finances they state absolutely that no new extension will be given and the interconnection of cash registers with POS, a measure which is one of the challenges of 2024 for the financial staff, will be completed within the first months of year.

The current schedule provides that the interconnection processes should be completed by February 29, 2024, and from March 1, 2024 cash registers and POS should be “one flesh”.

In order to avoid any delays, a Special Working Group has been set up to monitor the implementation of the project “Interconnection of Electronic Cash Registers with systems (POS) and with A.A.D.E.”.

It is noted that almost all categories of trades in the retail market must now accept card payments while all freelancers will have to have a business account and accept direct payments through the IRIS system.

The mandatory use of POS was extended to 35 professional sectors from street markets and fairs to kiosks, taxis, convenience stores, insurance and advertising companies, theaters and cinemas.

Although the measure applies from 1 January, traders who do not yet have a POS can avoid fines until 1 March 2024, provided they have proven that they have ordered their POS by 31 January 2024 and are awaiting setup and installation them from the cooperating banks. If this deadline passes, then the prescribed fines can even reach 1,500 euros.

Closed VAT returns

VAT returns submitted by businesses and freelancers will be “locked” from the beginning of the year. That is, the income submitted to the VAT return cannot be less than what is transmitted to the myDATA digital platform, and correspondingly the expenses submitted to the VAT return cannot be more than what is transmitted to the myDATA digital platform.

The VAT declaration codes will be automatically pre-filled by AADE based on the data posted on the myDATA platform and taxpayers will not be able to intervene to modify the data as the pre-filled declaration data will be locked. The pre-filling and locking of declaration codes starts with VAT declarations to be extended in 2025 to income tax declarations as well.

Targeted controls by AADE

In 2024, AADE is expected to intensify every available “weapon” it has in its quiver, on the front of tax audits. The audit mechanisms will be more targeted at categories of taxpayers in which there is traditionally a large amount of hidden tax material.

The scope of taxpayers under control is limited by the implementation of the tax bill, since control mechanisms are released to direct their attention exclusively to where the chances of capturing large hidden tax material are maximized.

In this context, a series of tax audits, investigations and cross-examinations will be carried out, which have been planned for 2024 by the AADE, activating new electronic weapons to deal with tax evasion and the detection of undeclared income.

In the planning there is a plan for at least 73,000 tax audits, which will be carried out by the audit mechanism. All kinds of economic activity, of individuals and businesses, are targeted.