AADE Issues New Clarifications on FIM Penalties and Compliance Requirements
Businesses using Fiscal Electronic Mechanisms (FIM) must ensure full compliance with their tax obligations to avoid administrative penalties and facilitate future tax audits.
The Independent Authority for Public Revenue (AADE) has issued Circular E.2044/2026, providing important clarifications regarding the existing penalty framework applicable to Fiscal Electronic Mechanisms.
The Circular does not introduce new penalties. Instead, it clarifies the current legislative framework by specifying:
- When each violation is considered to have been committed,
- Which administrative penalty applies,
- When the Tax Administration’s right to impose penalties becomes time-barred.
These clarifications are particularly important for businesses and tax authorities alike, as they reduce inconsistent interpretations that had developed in practice and promote a more uniform application of tax legislation.
What Does the New AADE Circular Cover?
Circular E.2044/2026 focuses on the obligations of businesses using Fiscal Electronic Mechanisms and clarifies the administrative penalties related to specific tax compliance violations.
The Circular mainly concerns:
- Failure to submit a declaration regarding the acquisition, modification or discontinuation of a Fiscal Electronic Mechanism.
- Late submission of the relevant declarations.
- Failure to retain the Fiscal Electronic Mechanism.
- Failure to preserve the fiscal memory.
- Failure to maintain the electronic records generated by the Fiscal Electronic Mechanism.
In addition, the Circular clearly defines the time at which each violation is considered to have occurred, a factor that directly affects both the applicable administrative penalty and the limitation period for imposing sanctions.
Business Obligations Regarding Fiscal Electronic Mechanisms
Businesses using Fiscal Electronic Mechanisms are required to comply with several obligations throughout the lifecycle of the device and even after it is no longer in use.
Proper compliance is essential not only for meeting legal requirements but also for ensuring a smooth tax audit process.
Businesses should ensure that they:
- Submit declarations regarding the acquisition, modification or discontinuation of a Fiscal Electronic Mechanism on time.
- Update the tax registry whenever changes occur.
- Keep all information submitted to AADE accurate and up to date.
- Maintain all required records in accordance with Greek tax legislation.
Obligation to Retain Fiscal Electronic Mechanisms
One of the most important reminders included in the Circular concerns the obligation to retain the Fiscal Electronic Mechanism and all associated records.
Businesses are required to preserve:
- The Fiscal Electronic Mechanism itself,
- The fiscal memory,
- All electronic files generated by the device.
Importantly, this obligation continues even after the Fiscal Electronic Mechanism is no longer in operation.
The retained records may be requested during future tax audits and therefore must be kept for the period required under the applicable tax legislation.
Current Administrative Penalties
The Circular provides a detailed presentation of the administrative penalties depending on the date the violation was committed.
Failure to Submit a Declaration (1 January 2011 – 31 December 2013)
For violations committed during this period, administrative penalties amount to:
- €600 (with the possibility of settlement at one-third of the amount).
- €900 (also subject to settlement at one-third).
The penalty is imposed per Fiscal Electronic Mechanism (FIM).
Failure to Submit a Declaration (1 January 2014 – 31 December 2015)
For violations committed between 1 January 2014 and 31 December 2015:
- €600
- €900
The penalty applies per Fiscal Electronic Mechanism.
Failure to Submit a Declaration (1 January 2016 – 15 September 2024)
For violations committed during this period, the administrative penalty is:
- €100 per Fiscal Electronic Mechanism.
Failure to Submit a Declaration (From 16 September 2024 Onwards)
For violations committed on or after 16 September 2024, the administrative penalty is:
- €500 per Fiscal Electronic Mechanism.
Late Submission of a Declaration (Up to 15 September 2024)
Where a declaration is submitted late up to 15 September 2024, the applicable penalty is:
- €100 per declaration, regardless of the number of Fiscal Electronic Mechanisms involved.
Late Submission of a Declaration (From 16 September 2024 Onwards)
For declarations submitted late from 16 September 2024 onwards, the penalty is:
- €500 per declaration, irrespective of the number of Fiscal Electronic Mechanisms covered.
Why Is the Date of the Violation So Important?
One of the most significant aspects of Circular E.2044/2026 is the clarification of the exact date on which each violation is deemed to have occurred.
This determination directly affects:
- The amount of the administrative penalty,
- The beginning of the limitation period,
- The Tax Administration’s legal right to impose sanctions.
By providing a clear legal interpretation, the Circular reduces uncertainty and contributes to a more consistent application of tax legislation during tax audits.
What Do These Clarifications Mean for Businesses?
Although the Circular does not introduce new penalties, it emphasizes the importance of complying with existing obligations relating to Fiscal Electronic Mechanisms.
Businesses should ensure that:
- All required declarations are submitted on time,
- The tax registry is updated whenever changes occur,
- Fiscal Electronic Mechanisms, fiscal memory and electronic records are retained for the legally required period,
- Periodic checks are carried out to verify that all information submitted to AADE remains accurate.
Proper compliance significantly reduces the risk of administrative penalties and facilitates successful tax audits.
Frequently Asked Questions (FAQ)
Does Circular E.2044/2026 introduce new administrative penalties?
No. The Circular clarifies the existing legal framework but does not introduce new penalties.
Which violations are covered?
The Circular applies to:
- Failure to submit declarations.
- Late submission of declarations.
- Failure to retain Fiscal Electronic Mechanisms.
- Failure to preserve fiscal memory.
- Failure to retain electronic records generated by the mechanism.
Why is the date of the violation important?
It determines:
- The applicable administrative penalty,
- The commencement of the limitation period,
- The Tax Administration’s right to impose sanctions.
Must businesses retain Fiscal Electronic Mechanisms after they are no longer in use?
Yes. Businesses must continue to retain the Fiscal Electronic Mechanism, its fiscal memory and all related electronic files for the period required by law, as these records may be requested during future tax audits.
Conclusion
Circular E.2044/2026 provides important legal clarification regarding the application of administrative penalties for Fiscal Electronic Mechanisms (FIM).
By defining when violations are considered to occur, clarifying limitation periods and reaffirming businesses’ compliance obligations, the Circular contributes to greater legal certainty and a more consistent application of the tax legislation.
For businesses using Fiscal Electronic Mechanisms, timely submission of declarations, accurate maintenance of records and proper retention of Fiscal Electronic Mechanisms remain essential for avoiding administrative penalties and ensuring successful tax compliance.
Link Consulting Is Here to Support You
At Link Consulting S.A., we provide comprehensive tax advisory and compliance services to help businesses meet their obligations regarding Fiscal Electronic Mechanisms (FIM) and remain fully compliant with Greek tax legislation.
Contact us today cause our experienced team can assist you in reviewing your compliance procedures, managing your tax obligations and preparing your business for future tax audits with confidence.
