Filenews 8 June 2024 - by Eleftheria Paizanou
Last year, the Tax Department returned many more taxes to hundreds of taxpayers, to whom a total amount of €626.6 million was transferred to their bank accounts.
Of the total refunds, an amount of €534 million concerns VAT, which is increased from 2022 (€462.5 million). It should be noted that the amounts of VAT refunds include offsets against debts to the state.
The increase in VAT refunds is due to the operation of the first phase of the new computerized system of the Tax For All Tax Department. The new system was implemented on March 27, 2023 and accelerated the procedures for examining VAT refund requests.
At the same time, with the new Tax For All, new criteria have been defined, resulting in an acceleration of the way of examination and an increase in the volume of refunds. According to data from the Tax Department, before the implementation of the first phase of Tax For All, VAT refund requests were pending for 21 thousand. taxpayers, however, 60% of them did not meet the criteria set, so they could not be examined.
In addition to the implementation of the new single computerised system, another factor contributing to the increase in VAT refund amounts was the change in the procedure, which was a European directive. In recent years, funds for tax refund are included in the revenue budget of the Department, as a result of which there are no longer any restrictions on the timely refund of VAT.
€72 million VAT refunds
Specifically, of the total tax refunds, €534.3 million. related to VAT. Of these, €474 million was remitted to taxpayers. At the same time, an amount of €13.8 million are offsets with other government departments, €35.4 million. They concern offsets with direct taxation and €6.1 million other set-offs. In addition, transfers amounting to €3.6 million were made. between taxpayers and VAT, while fines of €1,035 were imposed. Also, an amount of €656,000 are remittances abroad.
Income tax
At the same time, income tax of €91.2 million has been refunded to more than 280 natural and legal persons. Specifically, income tax of €3.7 million has been refunded to 17,920 self-employed persons. and 240,318 employees and pensioners have been reimbursed an amount of €45.5 million.
At the same time, 22,000 Legal entities have been refunded income tax of €41.9 million. Compared to 2022, the number of taxpayers who received a tax refund last year benefited 100,000 more. That is, in 2022, they had an income tax refund of €94 million.
Special defence levy
It was also returned to over 5,000 taxpayers special defence contribution of €1.4 million The refund of the special contribution for defence from interest concerns natural persons with a gross annual income of up to €1,000. In 2023, 89,376 defence taxes were imposed, of which 5,297 had a refund of an extraordinary defence contribution from interest totalling €1.4 million. In 2022, taxes were refunded to 1,652 persons, amounting to €549,000.
