The full text of the letter is as follows:
To the Governor of AADE Mr. Giorgos Pitsilis
Inside Athens, December 27, 2021
SUBJECT: TIN of apartment building management – Independent taxation of apartment building income.
Dear Mr. Governors
A few days ago it was announced that you are going to issue a decision that will facilitate the issuance of the VAT number of apartment building managements without a deadline and without a fine. On the occasion of this important initiative of yours, which is particularly timely in view of the submission of applications for subsidies for apartment buildings from the new “EXOIKONOMO”, and the consequent need to open bank accounts for the administrations and also for the heating allowance, we bring to your attention once again two of our proposals on this serious issue that concerns a large part of our society, with the hope of their adoption.
VAT FROM THE MAJORITY OF THE CO-OWNERS OF MULTI-STORY BUILDINGS.
To provide for the possibility of issuing a VAT number not only by the absolute majority of the co-owners of apartment buildings with a horizontal ownership structure, but and by the absolute majority of the co-owners of multi-storey buildings without establishing horizontal ownership, in accordance with articles 785 and 789 of the Civil Code. about “society” and regular management of the common thing, given that the election of an administrator by universal suffrage is practically difficult.
SELF TAXATION OF RENTAL INCOME SHARED SPACES:
Until 2013, it was legal to rent shared spaces of apartment buildings (e.g. old concierges, warehouses, inscriptions etc.) and the declaration of the rent with the VAT number of the apartment building by the manager, who paid the income tax once at the end of each year. The relatively small income, as a rule, was used for the maintenance and repair of the common areas and facilities of the apartment buildings, something particularly important today.
With the current KFE, for reasons increase in tax revenue, the disguising obligation of a separate declaration by each co-owner of the share of the lease attributed to him was legislated! Tragic error, which had exactly the opposite results, because especially in large apartment buildings, no co-owner has ever accepted to declare the “five-and-a-half” that was attributed to him as … monthly rent. So these spaces either remained empty and useless, or were leased under conditions of tax opacity, with the result that the State loses all the relevant tax revenues every year.
This provision must be repealed and the previously enforced independent taxation of the leases of jointly owned spaces, with a rate of 20%, reinstated. The State will collect much more revenue, much easier, because the relevant leases will be declared and the entire corresponding tax will be paid, while at the same time there will be transparency in the declaration of these leases and the exact details of their tenants.
At your disposal, Mr. Commanders, for any clarification and cooperation.
For the Board of Directors The President The Secretary General Stratos I. Paradias Tassos G. Vappas Attorney A.P. UIPI President Attorney A.P.
