Guarantees are required or by natural and legal entities in order to allow them to proceed to the new Tax Procedure Code included in the Finance Ministry bill that has been put into consultation. It is noted that since 2023 the launch of an operation has been through the platform of gov.gr and not by the IRS counters, providing as two basic conditions for the existence of an active VAT and the intention of commercial activity. Thus, in this case, on the basis of what is provided for in the new Code, no statement of initiation can be made by a natural or legal person whose VAT has been suspended or deactivated, while the declaration should include at least the place where the business is to be carried out (the place of business and any branches), the subject matter of the work, the accounting system to be kept and the VAT regime to which the taxpayer is subject. In addition, according to the bill, the Tax Administration requires guarantees from any entity to carry out business activity and falls under the following cases: if it is a natural person who has been bankrupt or who has become insolvent in another way, following the expiry of the suspension of his VAT use, if at the time he submits a declaration of initiation he has a total basic residual income tax liability, VAT, withholding taxes from an employed person or fines, at least EUR 100,000, if there is objective evidence that the taxpayer has ceased to carry out an economic activity, or has committed tax evasion or fraud or fraud or fraud of products subject to excise duty, or that he has violated or tampered with in any way with the operation of the tax electronic mechanisms, or persons, or that he has declared false or incorrect information on his acquisition, or has been registered in the tax register several times, following the expiry of the suspension of the use of his VAT, to a natural person who has been a director, executive director, executive or administrative board, executive or appointed person who has been appointed by a legal entity, or appointed by a natural person. In the above outstanding debts, it is noted that those subject to a partial payment arrangement or facility which is maintained and paid at least 3 instalments thereof are not included. The amount of guarantees therefore, for all the above cases, the new Tax Code stipulates that the amount of the financial guarantee cannot be less than EUR 3,000 and more than EUR 500,000. Especially for those who have committed smuggling, the amount of the financial guarantee cannot be greater than EUR 1,000,000. The duration of the guarantee may not be less than 2 years and longer than 6 years. In addition, a decision by the Tax Administration shall specify the condition applicable to the guarantee requirement, as well as the amount thereof, which shall be communicated to the natural or legal person or legal entity submitting the statement of initiation. In this case, the start of the tax register shall be completed only after the security requested has been provided. If a declaration of initiation is submitted at the same time as a declaration of registration, the entry of the taxpayer in the tax register shall be completed only after the security requested has been provided.
IRS: Who are responsible for providing guarantees for the start-up of a business
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