BUSINESS

Risk-based system for the return of VAT within a week

By Prokopis Hatzinikolaou

Value-added tax returns in Greece will soon be settled within just one week thanks to a new automatic system that Finance Ministry officials are examining in association with their colleagues at the General Secretariat of Information Systems.

Each company’s tax records will determine the time the state will take to return the VAT paid. Companies that have been consistent in their tax payments and have not violated any tax laws in the last couple of years will have their VAT returned without any inspection.

The new system validating VAT rebates is based on risk parameters. Any enterprises found to have committed tax law violations in the past will have to wait until the authorities have monitored the data submitted. The risk-based system will have to apply by end-September according to Greece’s commitments in the revised agreement with its creditors.

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