- Greece is considering a VAT split payment model where part of the VAT is paid directly to tax authorities at the point of transaction to reduce VAT evasion and arrears.
- The measure would change cash-flow dynamics for businesses, as they would lose access to VAT funds often used as working capital.
- The system would require upgrades to payment infrastructure and is expected to start with a pilot phase for service providers.
- Two models are being considered: a fixed percentage of VAT automatically transferred per transaction, or an alternative approach.
- The move follows similar evaluations in the UK and Netherlands and aims to address Greece’s significant unpaid VAT problem.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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