When is the pilot application of “e-Accounting”

Finally, on paper invoices and handwritten books. From the second half of 2019, the Independent Public Revenue Authority (AADE) plans to proceed with the pilot implementation of the “e-Accounting” project. More than 1 million freelancers, self-employed and entrepreneurs will issue their invoices electronically, while online will also update their tax books.

Handwritten invoices are a “scourge” for the market, which is full of virtual documents that cause enormous damage to public revenue as it affects VAT, income tax for natural and legal persons and social security contributions. The identification of virtual invoices is extremely difficult, especially since last-minute vendors have created virtual invoices created in the name of foreigners that can not be identified and consumes enormous audit time and even afterwards.

E-invoicing brings about a substantial change beyond reducing bureaucracy. Apart from the two traders, the Independent Public Revenue Authority is also informed in real time. Thus, it is no longer necessary to submit aggregate statements of customers and suppliers, the publication of periodic VAT declarations is much easier, as is the keeping of the books of the tax office (whether duplicate or duplicate).

E-invoicing and online bookkeeping will be mandatory from 1 January 2020.

Since business books are made electronically, this means that the periodic VAT returns are also ending.

How will the new system work?

The “online accountant” that comes up to business and business transactions will work on an online platform. Any revenue or cost record will be displayed at the same time on both the Trader’s computer and the Taxisnet computer.

The application will contain:

– A special form in which all proceeds from sales of goods and services will be recorded in detail.

– A special form in which the company’s costs will be recorded in detail.

– A column form will show the sum of revenue and expenditure for each day as well as for each month for the quarter and for the whole year or year (as some companies keep books in over twelve months).

– The columns will show the revenue or expense, VAT, VAT , retained taxes (eg salaried services), other taxes, stamp duty and other taxes or fees.

The new system will be applied by all by 2020 and the AAD will know in real time the sales turnover of each business or the self- employed, with the result that the intersection is a “one minute” case, emphasizing unusual tax behaviors (steep reduction of a company’s turnover, outrageously increased costs, etc.)