Of Chrysostom Chufi

As we enter the “tired” zone of the tourist season – July and August – the AADE In addition to intensifying the audits – even using drones in August – it also activates new tax tools.

The reason for the tax identification- which exists from last year in the AADE Arsenal- and has come to function as an antidote to business phenomenon- mainly seasonal- which starting their operation season, is a type and underline and pays the first installment of VAT but then ” Finance ministry.

The phenomenon of tax evasion has been intensified in recent years and this tax tool had been a proposal by AADE itself. The interim tax determination will be activated in cases where the combination of existing criteria results in immediate or imminent risk of tax evasion- mainly for seasonal or newly established businesses- or even the risk of abandoning the country by the taxpayer. AADE will now be able to “capture” taxable material before it is closed while the business period is in progress.

For example, let’s say that a business is set up in May on an island. It is a simplistic which means that it must submit a first VAT statement in June for the second quarter of the year. It submits the statement, but it pays neither the euro nor does it regulate it.

On the basis of the new regime, when checking -c. At the end of August -the auditors will not only deal with the period until June, which is the end of the second quarter VAT period, but will also check during July and August. And based on what they see in their details will calculate the tax which is also directly demanding. Until last year, September would have to pass to check in July and August.

In any case, the Tax Administration states that this is not a general stance of AADE but a tool for dealing with special circumstances related to businesses with a specific tax profile and specific behavior.

Following the tax certificate from the precautionary audit, the taxpayer either pays the debt or ensures the payment of it by providing a guarantee or accepting the registration of weight on his property in favor of the tax administration for the total amount of the tax debt. Guarantee and weight registration are maintained until the tax debt is fully repaid.

It follows within 1 year of the date of issuance of the tax determination act, tax correction.

Reinforcement in the control of the economic activity of new businesses will also work the activation of the VAT registration regulation with the month for those who have launched work from April April this year (as well as those who started operating in 2024 until March). Upon completion of two years after the start of the activity, those who have observed simplified books have the option of choosing a VAT statement a quarterly tax period.