Greece Top Court Strikes Down VAT Fraud Tax ID Suspensions

09:19 13/5/2025 - Πηγή: iEfimerida

Greece’s highest administrative court has ruled that suspending a taxpayer’s identification number in cases of tax evasion is unconstitutional, dealing a blow to the government’s efforts to combat VAT fraud through targeted enforcement.

The Council of State (StE) found that the suspension or deactivation of a Tax Identification Number (AFM) constitutes a severe interference with the economic activity of individuals or companies, effectively

barring them from conducting business.

The court stated that such a measure requires a clear legal framework with safeguards, rather than being left to the discretion of tax authorities without defined limits.

The decision challenges a key tool used by the Independent Authority for Public Revenue (AADE) and the Finance Ministry, particularly in cases of cross-border VAT fraud, known as “carousel” schemes. Officials had selectively relied on this measure, targeting businesses involved in large-scale tax evasion linked to intra-EU transactions.

In 2024, AADE’s special fraud units completed 156 VAT investigations and uncovered violations in over 80% of cases, identifying 126 instances of “missing traders” connected to VAT fraud, leading to the deactivation of their EU VAT numbers.

Under existing law, tax authorities can suspend or deactivate a Tax Identification Number if there is objective evidence of tax evasion, cessation of business activity, tampering with fiscal equipment, or submission of false information, with taxpayers retaining the right to contest such actions.

However, the Council of State ruled that the current legal provisions fail to meet constitutional standards, stating that the suspension of an AFM due to tax evasion represents a profound intervention in a taxpayer’s economic life, equivalent to a prohibition of business activity, due to the lack of specific legal criteria, proportionality safeguards, and oversight mechanisms.

Legal experts suggest the ruling does not entirely prohibit the measure but requires lawmakers to establish a tighter legal framework with clearer thresholds and procedures.

The Finance Ministry is now expected to propose legislative amendments to address the court’s concerns while preserving the measure as part of Greece’s anti-fraud tools.

By Yiorgos Pappous

Διαβάστε περισσότερα στο iefimerida.gr

Διαβάστε ολόκληρο το άρθρο >>
Keywords
top, tax, tax, top, due to, blow, business, key, tool, independent, public, aade, finance, numbers, law, false, fail, due, life, experts, tools, iefimerida, iefimerida, public, anti, blow, business, cross, due, due to, experts, fail, false, finance, independent, key, law, life, numbers, scale, tool, tools
Τυχαία Θέματα
νβα.ψομ, κυριακουλης, hills, repos
iNews > Ειδήσεις > iEfimerida
Greece Top Court Strikes Down VAT Fraud Tax ID Suspensions,