Greek Businesses Warned 'Free' Treats Are Not Tax-Free After Pizza Chain Scandal - iefimerida.gr

Greek Businesses Warned 'Free' Treats Are Not Tax-Free After Pizza Chain Scandal

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ANTHEE CARASSAVA

A leading Greek business chamber has warned companies that labeling goods as free "treats" or gifts does not exempt them from issuing receipts or paying sales tax.

The warning follows a scandal in which a pizza chain allegedly used the practice to hide millions in sales.

"Simply marking something as a 'gift' or 'treat' is not enough, and the 10 euros (threshold) does not abolish the receipt," the Piraeus Chamber of Commerce and Industry said, citing guidance from Greece's tax authority.

ΤΟ ΑΡΘΡΟ ΣΥΝΕΧΙΖΕΙ ΜΕΤΑ ΤΗΝ ΔΙΑΦΗΜΙΣΗ

The chamber said every sale requires a receipt, regardless of amount.

A 10-euro ($11.60) limit applies only to promotional gifts given to build business relationships, and only under strict conditions.

Such gifts cannot be the same kind of product the business sells, cannot be repeated to the same person, and cannot exceed 1% of annual gross revenue in total.

Free food or drinks in restaurants must be assessed case by case and cannot simply be classified as small gifts to avoid sales tax, it said.

Product samples form a separate category and must be marked "free sample."

The chamber urged businesses to record the type, quantity, value, date and purpose of every free item.

Police say the Pizza Fan chain logged paid orders as free "treats" to avoid issuing receipts, hiding about a fifth of its sales over a decade.

ΤΟ ΑΡΘΡΟ ΣΥΝΕΧΙΖΕΙ ΜΕΤΑ ΤΗΝ ΔΙΑΦΗΜΙΣΗ

The chain's owner, Konstantinos Antaras, was jailed pending trial on Tuesday.

He is presumed innocent.

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