Greece to Use Banks to Collect VAT at Source

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.

Eamon McNicholas
Tax Barrister, Accountant
http://www.EamonMcNicholas.com

Advertisements

About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
This entry was posted in Tax and Accounting News and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s