Greece has brought in a law to make banks collect VAT at source out of B2B transactions over €3,000 and B2C over €1,500. The idea is the banks hand over the VAT to the tax authorities inside a week, so increasing overall compliance and the tax take. It’s a high-risk measure. While boosting bank liquidity it will reduce cash flow for all Greek traders. The risk of the banks defaulting and going down with the money is all too stark. But desperate times in Greece have resulted in harsh choices being forced on Greece as the terms of its EU bail-out. Needed to solve the problems caused by its EU bail-in to the EU €Euro.
Tax Barrister, Accountant