Practicing businesses without licence/registration

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Practicing businesses without licence/registration

Post by Gringlish »

This will probably start a cascade of comments which I will say I will not be responding to. Below I state a feeling among many small businesses struggling with cash flow and having to pay out Chamber of Commerce fees, Business Licence tax, 20% tax on the first Euro earned, outgoings & overheads, self-employment stamp (extremely expensive here in Greece and without proper health coverage now and probably no pension at the end of it) so this will apply to all those (and they do know who they are, no exclusion of race or creed).

Now more than ever, we all need to make an effort to support our local licenced businesses, which are working especially hard now to ensure that they provide you, the customer, with quality produce and quality service. As in other European countries where there are phone lines set up for Snicking, so there is a phone number here in Greece Tel. 11012

"With all the articles and documentaries out there giving the impression that all people here avoid paying taxes, withhold VAT payments and in general do not conduct the business as per tax rules and regulations; I am not going to say "rubbish" but I will state that there are alot of us out there paying our taxes, paying the VAT payments, keeping our books in order, issuing official receipts, paying an accountant, paying the Chamber of Commerce, and paying the new tax on businesses which was 300 € (for a year operation) and is now 500 € not to mention 20% tax on the 1st € earned and the dreaded self-employment insurance which is a joke and very very expensive.

Bearing all the above in mind it will be understood what has to be said next! Please ensure that you use licenced services. Please ensure that you get receipts for services provided (official receipts) because...
if SDOE (Tax Office Policing) catch the service provider - fine!!!!! and the service receiver - fine!!!!

If your service provider states that taxes are paid elsewhere in Europe and therefore no receipts here in Greece.... BOURDES (Rubbish). Any business based abroad that operates in Greece must have established an 'outlet/representative' here and therefore be registered/licenced and all the books etc in place.

A craftsman/builder/service provider can issue you with official receipts, if official receipts cannot be issued then the business is not registered/licenced. A real estate agent has a licence number (with an ID card) issued by the Chamber of Commerce with an expiry date on it! You ask to see the ID and naturally if there is no ID then there are no official receipts which means NOT LICENCED.

There has always been cash in hand services provided ALL OVER THE WORLD and there probably always will be, but think! How often do you use unlicenced services back home?"
Red Ken
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Re: Practicing businesses without licence/registration

Post by Red Ken »

Nicely put Gringlish and very accurate, however, far too polite !

This subject has been posted and reposted to no avail. There are probably more people working illegally now than there were last year. Their reasons for not registering range from the sublime to the ridiculous,i.e. 'the Greek government make it too difficult to register,' ' I'm foreign, it doesn't apply to me,' ' I pay my taxes in my native country.''

We could, of course, include in this post all the illegal foreign vehicles and the misuse of the UK E111 form for health cover which should only be used while on holiday in a foreign country - not while living there. The Greek health service has enough problems trying to provide health cover for the Greeks.

You can also now phone the local police station and they have to investigate any complaint the same day, and, you are perfectly correct in saying that not only is the worker fined but also the person that employs them.

As I said at the beginning, it's all been said before but maybe with the Greek economy as it is those of us that love Greece may think twice before handing over our hard earned cash to the illegal leeches, never mind which nationality they are, and always ask for a receipt.
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Re: Practicing businesses without licence/registration

Post by mac »

Well said both of you !!!!

Small businesses are closing down everyday so, yes, they need our support.

On the subject of receipts, if you are in doubt as to whether the one you have been given is legal or not here are a few pointers.

Hand written receipts - for services - like builders, plumbers, electricians etc, will always have the business stamp on the left-hand upper side of the receipt. This will include the name, address, tax number and tax office of the business. If you look closely at the paper you will see a number of 'pin-hole' stamps which have been added by the tax office. These are in the form of numbers which have been stamped right through the receipt book.

If you are in a restaurant or a taverna the receipt should be from a cash register - not on a piece of paper that says ' ΔΕΛΤΙΟ ΠΑΡΑΓΓΕΛΙΑΣ ' ( record of order. )

If you receive a receipt and are in doubt of it's validity there is a simple solution. The next time you are in Kalamata visit the tax office. it will only take them 5 minutes to tell you if the business is legal or not. They will be very happy if you take them an illegal receipt as they will immediately start investigating the illegal business.

As we know, in this years tax return we must show receipts to the value of 25% of our total income so it makes sense to pay attention and collect legal receipts.

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Joined: Thu Aug 26, 2010 6:46 pm

Re: Practicing businesses without licence/registration

Post by Gringlish »

Food for thought

SDOE - can ask to have copies of your electricity bills to see if you are using your home as a permanent residence or holiday home
SDOE - can ask for your bank statements
SDOE - can check your Greek fiscal number and details to check where you declare your home of residence (abroad or Greece)
SDOE - if you are resident in Greece and show an income you need to know that money bought in from abroad (unless proven to be a pension or disability benefit - careful of any FB photos here) will be classed as your income so suggest your get down to your accountant and double check on your tax status.
SDOE - probably have all the right to double check your tax status abroad hmmmmmmmm!

who are SDOE (tax police in casual clothing working 24/7)

UK self-employment stamp around 3 quid a week
Do you have to be registered with Chamber of Commerce in the UK, if so how much?
Do you have to pay a yearly charge to the tax office to operate a business?
What VAT do you have to collect or are some small businesses exempt?
How are you taxed?

Greek self-employment stamp from 43E-125E a week
500 E per year to the tax office so as to operate a business
80 E per year to the Chamber of Commerce
20% tax from the 1st E you earn
VAT every 3 months
Tax fines should they inspect your books, they will find something they don't like even if it is a 0 missing or a t is not crossed.

And if anyone is thinking that Greeks keep together so x nationality (UK, German, French etc) keep together that is all well and good, but think... are you maybe cheating your home country tax system as well as your host country system? Clever?

Is there not a saying somewhere that says Cheating is Easy, .... ?
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