Electronic invoicing has been introduced in Greece as part of the wider digital transformation and the effort to combat tax evasion. The legal framework governing the use of electronic invoicing providers aims to make businesses more transparent and efficient, while encouraging the use of electronic solutions for recording and transmitting tax data. Let's look in detail at the relevant legislative framework and the importance of mandatory interconnection with electronic invoicing providers.
Basic Legal Framework
Electronic invoicing was introduced through a series of pieces of legislation, which set out how businesses can or are required to issue and transmit invoices electronically:
1. Law 4308/2014 (Greek Accounting Standards – ELP):
This law set the framework for electronic invoicing, recognizing electronic invoices as equal to paper invoices. It also specifies the requirements that electronic documents must meet in order to be considered valid.
2. Law 4548/2018:
It introduced mandatory electronic invoicing for transactions with the State, such as in cases of public contracts and tenders. This law promotes the digitization of public transactions and increases transparency in business relations with the state.
3. Law 4646/2019 & Ministerial Decisions (myDATA):
The most important step for the adoption of electronic invoicing in the private sector was made with Law 4646/2019, which introduced the mandatory transmission of financial data to the myDATA platform of the Independent Public Revenue Authority (AADE). This platform allows the monitoring of business income and expenses in real time, ensuring the immediacy and accuracy of tax data.
Mandatory Interface with Electronic Invoicing Provider
Interfacing businesses with an e-invoicing provider is not mandatory for all businesses. However, it offers important advantages that encourage its adoption, while in some cases, such as in transactions with the State, this interconnection is mandatory.
Οι Electronic Billing Providers interconnection of businesses with the myDATA platform and the transmission of invoice data to it. These providers help simplify the process of recording transactions by enabling electronic issuance, sending and archiving of invoices.
Incentives for Using Electronic Invoicing
Businesses that choose to connect with an e-invoicing provider enjoy several tax and administrative benefits, such as:
1. Shortening the VAT Refund Deadline: Businesses using an e-invoicing provider can claim VAT refunds faster as the transaction verification process becomes easier and more immediate.
2. Reduction of Tax Audits: The use of electronic invoices through certified providers can reduce the possibility of tax audits, as the transmission of the data to the myDATA platform ensures the accuracy of the declared financial data.
3. Digital Archiving: Using an electronic invoicing provider allows invoices to be stored digitally, which reduces the need for physical filing and helps organize business data.
Conclusions
Although the interface with an electronic invoicing provider is not yet mandatory for all businesses, Greek legislation encourages its use by offering tax incentives and facilities. For transactions with the Government, electronic invoicing is already mandatory, and the use of a provider can contribute to better management of tax obligations.
The adoption of electronic invoicing, either mandatory or optional, is an important step for the digital transformation of Greek businesses and the improvement of transparency and efficiency in the field of tax compliance.
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