Home Finance specialist Cyprus demands that businesses also accept cards, not just cash | cyprus economy

Cyprus demands that businesses also accept cards, not just cash | cyprus economy

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Aiming to reduce tax evasion and hold them accountable, 80 business and service groups in Cyprus are now required to accept payments in credit and debit cars so they cannot use cash to avoid their payments. obligations.

It includes groups known to hide income, including doctors, lawyers, and street vendors, although a similar law in Greece has been easily broken by those who claim that the machines process payments and do not. no internet access.

As card use has increased during the COVID-19 pandemic to avoid touching paper money and coins and with increased use of online home delivery services, some Cypriot businesses are resisting.

The list of companies and services required to comply is long: accounting firms, hospitals, dentists, general and specialized medical professions, catering, entertainment and leisure places, hairdressers, campsites, caterers and mobile canteens.

In addition, auto repair services, plumbers and air conditioning installations as well as all retail businesses have to comply, but it was not said how this would be applied because in Greece, for example, customers and Service providers often enter into cash deals for lower prices and tax avoidance.

Businesses and services must also inform customers that cards will be accepted, The Cyprus Mail said in a report on the new measures, which still allow the use of cash.

“This is a positive measure in terms of tax evasion and transaction security,” the president of POVEK, the trade union of craftsmen and traders, Stephanos Koursaris told the newspaper. It will also save time, as entrepreneurs may not need to visit the bank frequently.

But the union wants companies not registered for value added tax (VAT) to potentially be exempted in addition to certain products with minimal profit margins sold in convenience stores, the newspaper said.

There are also complaints about taking cards for small purchases such as cigarettes, newspapers and calling cards with fixed prices and small profits that could be affected by the fees associated with taking certain cards. credit.

Spyros Xinaris said this is a real problem for small kiosk operators on the streets who rely on impulse shoppers who walk around for small sundries at low cost but also make little money for them. owners.

“They will force kiosk owners to break the law,” he told the newspaper, as most kiosks had refused to accept cards for most items or would be allowed to charge more to offset the related costs. to taking plastic money.

RCB, the only acquiring bank in Cyprus to offer payment processing solutions, told the Sunday Mail: “Indeed, there is an increased interest in RCB Bank’s digital products and services, especially when it comes to services. acquisition merchants to accept card payments by client companies, merchants and other professionals in view of the new decree.

Finance Ministry tax officer Irini Ioannou said inspections for violators would not begin imminently, while noting that there are fines of up to 2,000 euros ($ 2,345 ) for initial offenders, who can appeal to an administrative tribunal.


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