The integration of cash registers with POS systems has opened the eyes of tax authorities to a hidden treasure within the taxi sector. With the rise of electronic transactions and the immediate transfer of data to the Independent Authority for Public Revenue (AADE), state revenues have already increased by at least €1.2 billion compared to the seven months from January to July 2023.
The remarkable surge in taxi revenue through POS has increased by 177%, prompting the Ministry of National Economy and Finance and the AADE to place stickers in taxis reminding passengers that drivers are required to accept card payments.
According to the Ministry of National Economy and Finance, taxi revenues through POS reached €26 million, with the eight-month total hitting €18 million. This year, following the integration of cash registers with POS, the AADE recorded a turnover of €50 million, with total expectations for 2024 reaching €73 million.
Key Findings from Other Sectors:
- Food and Beverage Sector: Turnover via POS in 2022 was €6.8 billion. In the eight-month period of 2023, transactions reached €4.8 billion, increasing by €700 million to €5.5 billion in the same timeframe this year. Projections indicate a total turnover of €7.9 billion for 2024, representing an increase of €1.1 billion compared to last year.
- Hairdressing and Beauty Salons: Turnover via POS was €505 million in 2022. By the eight-month mark in 2023, transactions had reached €326 million, with this year showing an increase to €371 million. The estimated turnover for 2024 is expected to hit €575 million, reflecting an approximate 14% growth.
Based on the latest figures from the Ministry of National Economy and Finance, the implementation of myDATA electronic books, widespread POS usage, automatic VAT declarations, and new measures against smuggling have already yielded an additional €1.2 billion in state revenues compared to the same seven-month period in 2023.
And this is just the beginning! By 2025 and 2026, benefits are expected to increase or even multiply, potentially reaching €2 billion to €3 billion annually. The government will collect not only the additional VAT but also extra income taxes on profits from businesses that were previously concealed but are now being revealed through the new systems implemented by the AADE.
As it appears, every passing month brings in more VAT revenue that the government was unable to collect prior to these changes. While the VAT gap reduced to 21% in 2020 and 18% in 2021, this year it may fall below 15% or possibly even 14%.
