e-Tax Compliance in Greece – myDATA

The digitalization of the Greek tax system was approved in 2019 through Νόμος ν. 4646/2019. However, the health crisis caused by COVID-19 has delayed its implementation.

The Greek Tax Authority called “The Independent Authority for Public Revenue” (IAPR), conscious of the difficulties companies have faced trying to adapt to the new electronic tax report, has given companies more time to adapt by making November 2021 the deadline for the e-tax compliance. 

The new system is being implemented through phases based on the information companies must transmit. They must transmit tax and accounting information in an electronic format through the myDATA platform. 
 

What is My Digital Accounting & Tax Application - myDATA

myDATA is a platform created by the IAPR to digitalize the tax and accounting declarations of companies through the issuance of electronic accounting books.

The IAPR is implementing myDATA because it wants to facilitate tax compliance for companies and achieve greater transparency in their transactions. This will help foment an environment of trust between the tax authority and private companies and will reduce tax fraud and evasion.

The implementation of myDATA is a major leap in the digital transformation of the Greek tax authority.

What Companies Must Declare Taxes Through MyDATA?

All companies that conduct accounting according to Greek accounting norms.

What Tax Information Must be Reported Through MyDATA?

Companies must report:

• Summary of revenue and expense documents (synopsis)
• Classification of revenue and expenses by type
• Enough accounting entries to determine end of year accounting and tax results (for example, payroll, depreciation, revenue / expenses accumulated at year end)

Besides facilitating the declaration of accounting and tax information through myDATA, two electronic books will be generated and updated:

• (Detailed Book): contains the revenue and expense document data, the classification of these documents, and the accounting entry adjustments,
• (Summary Book):  Document that reflects a company’s tax and accounting results in an aggregate manner based on information provided in the detailed book.

What is the Compliance Deadline?

• As of November 1, 2021: all companies must transmit income information required by the IAPR through myDATA. 
• As of January 1 2022: all the companies must transmit expense information required by the IAPR through myDATA.
• Starting from January 1, 2024: All companies must declare their sales invoices (Accounts Receivable) to the MyDATA platform in real-time. The platform will validate each invoice by applying a unique identifier (MARK). Before sending the invoice to the final customer, both the unique identifier and a mandatory QR code must be included in the document.

How to Issue Information to the MyDATA Platform

• Based on the information obtained from the ERP, EDICOM's Global Compliance solution transforms the data into the format required by IAPR and sends it to MyDATA.
• MyDATA generates accounting ebooks and validates the information, assigning a unique identification code, called MARK, to each invoice.
• This information is integrated back into the company's ERP.
•  EDICOM electronically stores documents securely and reliably during the period stipulated by the law.
• The EDICOM platform sends the document to the final customer, including both the unique identifier and the mandatory QR code.
• The entire process is done immediately and transparently.

The government has established four ways to send information:

• Through ERPs
• Through e-invoice providers
• Manually through the myDATA platform (only small companies)
• Certified cash registers for retail sales transactions.

Who Must Declare Tax Data through myDATA and how often?

• Revenue Documents (for example, account receivable invoices) must be reported and classified by issuers in real time.
• Expense Documents (for example, accounts payable invoices) Generally they don’t have to be reported by the recipient since they have already been reported by the issuer. The recipient should classify this expense. However, if the issuer has not reported the revenue document (for example, and invoice issued by a foreign supplier, or if the issuer did not perform its legal obligation), the recipient must also report the expense before classifying it. The expense must be reported and classified before the end of the VAT declaration period (last day of the following month), except in cases where the issuer has not reported the document by omission (not because the issuer is exempt from the obligation). In this second case the issuer must report and classify this expense within the two months following the end of the VAT declaration period.
• All companies must report the necessary accounting entries to determine the annual tax and accounting results (payroll, depreciation, etc.) accounting entries will be reported until the end of the sixth month after the end of the fiscal year.
• Payroll will have to be reported during the withholding declaration period.

The digital tax declaration model will coexist with the current VAT declarations. The Greek tax authority IAPR will cross reference the myDATA e-books with VAT declarations. If there are any discrepancies taxpayers will have 2 months to correct any errors. Failing to correct any errors within the established period can trigger audits by the tax authority.