Article 206 of the VAT Directive requires taxable persons to pay VAT when submitting their declaration. Member states have the freedom to implement measures for VAT collection and fraud prevention. The directive does not specify penalties for non-payment, but member states must take effective measures to protect the EU’s financial interests. Member states must combat tax evasion and employ legislative and administrative measures to ensure VAT collection. Penalties for late VAT submission vary among member states, with fines calculated as a percentage of the VAT amount, accompanied by interest payments. The range of fines differs across countries, with the highest minimum fine at €4,000 and the lowest at €20.
Source: taxheaven.gr
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