The tax-free level for the 2017 financial year tax returns is directly linked to the value of purchases made with plastic money. If one lacks the requisite minimum number of debit or credit card receipts required by their declared income, then they are liable to be burdened with up to 22 percent extra taxes on the amount of the shortfall.
More specifically, for declared income of up to 10,000 euros, taxpayers must have plastic money receipts for 10 percent of the income, 15 percent for a declared income between 10,001 and 30,000 euros, and 20 percent for declared income over 30,000 euros.
For example, a salaried employee who declares 30,000 euros in annual income must produce 4,000 euro in plastic money purchases receipts. If the said taxpayer produces only 3,000 euros in purchases, then the 1,000 euro shortfall is taxed at 22 percent, meaning he or she pays an extra 220 euros in taxes.
The list of receipts accepted by the tax bureau includes bills from supermarkets, electricity bills, water bills, cell phone and land line bills, heating fuel, residential building common charges, repairs, auto parts, barbers and hair stylists, jewelry, watches, tuition, taxis, travel tickets, household appliances, municipal taxes, alcohol and tobacco.
The only exemptions to the above are for elderly people who are over the age of 70, and people with at least 80 percent disability. These two categories of taxpayers must present receipts from cash purchases equivalent to what would be required for plastic money purchases.
For married couples and those with legal partnership agreements, the receipts over and above the minimum value required in plastic money purchases can be rolled over to the other spouse’s tax declaration, so that he or she too can accrue the minimum value required in plastic money receipts.