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AADE’s Big Brother: “GPS” against tax evasion in car repair shops, parking lots and car washes

The digital vehicle customer register asks companies to record and send to AADE real-time data resulting from the exercise of their business activity

The Independent Authority for Public Revenue (AADE) ‘Big Brother’ kicks off officially on July 1, aiming to closely monitor transactions in car repair shops, car washes, parking services, and vehicle rental firms, as part of a wider crackdown on tax evasion.

The digital vehicle customer register, which is being implemented on a pilot basis, asks companies to record and send to AADE real-time data resulting from the exercise of their business activity.

Businesses that are required to adopt the digital customer list from the beginning of next month are the following:

  • vehicle repair and maintenance workshops,
  • car repair shops,
  • businesses that install alarms, sound systems and instruments on vehicles,
  • car parkings,
  • car washes,
  • businesses that rent cars, motorcycles, passenger vehicles intended for professional or personal use, commercial vehicles and agricultural vehicles.

The adoption of the digital client list aims to limit tax evasion in these sectors in which, according to data from the Independent Authority of Public Revenue, the rates still remain high.

More specifically, car repair shops hold the negative lead, with tax evasion reaching 67%, while car washes follow with 60%. Significantly lower, but also worrying, are businesses in car parking areas, where the rate reaches 41%, i.e. 4 out of 10 businesses do not declare all their income.