TAXATION

Automatic tax rebate process

Vast majority of applicants to have their dues paid out without tax officers intervening

Automatic tax rebate process

Tax rebates will start being implemented automatically, without the intervention of tax officers, according to the plans of the Independent Authority for Public Revenue (IAPR).

The corporations and freelance professionals concerned will be able to submit their applications online, and in a short period of time they will see their bank account credited with the value-added tax rebate due.

The IAPR business plan provides that within 2022, and “aiming to bolster entrepreneurship and enhance confidence between the state and the citizens, we are working toward the acceleration of tax rebates. In particular, we are targeting the realization of an integrated and automatic system of rebates for all categories of taxes, by utilizing the profile of each taxpayer and criteria analysis.”

In total, the tax administration intends to return taxes amounting to 5 billion euros, with its target being to pay out all outstanding rebates (those due for more than 90 days) that cost the state as they incur interest payment.

The IAPR is also proceeding to the drafting of a “golden list” of recipients for the acceleration of VAT credit return. The list will mainly include taxpayers and businesses deemed to be of low risk for tax evasion, provided they satisfy the following criteria: They must have been checked for at least three years with the sum of the dues returned (following inspections) not differing by any more than 5% from the rebate applied for this year; they should not have had any tax or customs violations recorded; and they should not be considered as suspicious for fraud regarding international transactions, following the application of risk analysis criteria, which are examined at a central level and are not published.

The automatic process will be employed for the vast majority (some 97%) of tax rebate applications, while the rest will still have to undergo inspections with the requirement for the supply of additional data by rebate applicants, according to the IAPR action plan.