How can I reduce tax and VAT?
TaxProtection - Kasimatis Stylianos - Accounting Office - Santorini
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Entrepreneurs and freelancers are fighting an uphill battle to keep their businesses open and reduce their debts to the tax authorities and insurance funds. An effective tactic for this is good expense management.
It has generally been proven that all expenses considered necessary for the achievement of the business purpose and the exercise of the professional activity can be rejected as expenses.
Professionals can reduce taxation and value added tax (VAT) by claiming several expenses as "deductible business expenses". This can apply to sole proprietorships as well as to Private Equity Companies (LPCs) or Limited Partnerships (LLPs). Detailed information on these costs is provided below.
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The costs arising from the operation of the business include:
- Business space rental expenses, according to the rental agreement filed with the Financial Services Administration (D.O.Y.), and common building expenses.
- Electricity, water and heating bills, even if they are in the name of the property owner.
- Expenses for mobile and fixed telephony.
- Purchases of furniture and other equipment required for the operation of the business.
- Purchases of electronic goods, such as mobile phones, computers, tablets, printers, etc., as well as software (commercial programs, Windows, MS Office, antivirus).
- Materials for the cleanliness and safety of the area, such as office pharmacy, fire extinguishers, perfumes, etc.
- Stationery and printed printer supplies.
- Rentals of machines used for business needs.
Overall, these costs are an important part of running and effectively managing the business.
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The different categories of expenses mentioned are:
Administrative Expenses and Payroll:
- Payroll and staff remuneration expenses, provided they have been paid. If payroll expenses have not been paid through business bank accounts or checks made payable to them, then they are not recognized as expenses.
- Insurance contributions:
- All obligations to insurance funds, such as the Unified Social Insurance Agency (EFKA), the Self-Employed Insurance Organization (OAEE), the Social Insurance Institute (IKA), the Military Inheritance and Pensions Fund (TSEMEDE). Also, these expenses are only deductible if they have been paid.
- Freelance Fees:
- Fees to freelancers such as lawyers, accountants, notaries, engineers, etc.
- Memberships in Professional Organizations:
- Expenses related to subscriptions to professional organizations.
- Staff Training:
- Expenses related to the education and training of the company's personnel.
These costs are a significant part of the operating costs of the business and must be taken into account when calculating financial performance.
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