Tax break for online receipts
The Finance Ministry’s tax reform blueprint provides for the exemption from taxpayers’ taxable income of their expenditure made online to sectors and professions that rank high on the tax evasion chart.
The government’s planning aims at the further expansion of the tax base with the strengthening of online transactions through the provision of incentives for specific tax years (from 2021 to 2025), such as the exemption from individuals’ taxable incomes of 30% of online spending for the acquisition of goods and services in certain sectors of the economy where tax evasion is rife. That means that if a taxpayer has spent 1,000 euros on a product or service listed for a tax discount, they will have €300 cut from their taxable income.
The list of sectors and professions qualifying for such discounts include education, entertainment, healthcare services, car repair shops, home repair services, hairdressers, travel services, small food stores, lawyers, gyms, plumbers and generally professionals involved in construction, among others.
However, this tax discount is not certain to fetch results as it will have a small impact on taxpayers’ dues.
