# Paying Business tax



## xxxxxxJimmy 360 (Oct 8, 2009)

Hi all.

Can anyone answer this question for me please.

When regestering a business, if we do it as two owners i.e the wife and myself would we be liable for two lots of tax or would say i be taxed as the business owner and my wife as an employee.

Regards

Jim :juggle:


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## karonnz (Mar 8, 2011)

jim & Kaz said:


> Hi all.
> 
> Can anyone answer this question for me please.
> 
> ...


You would be taxed jointly as husband and wife team, but if you open a business in two names you will have to pay social security each, if it's in one name the social security doesn't have to be paid for immediate family just the staff working for you


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## xxxxxxJimmy 360 (Oct 8, 2009)

karonnz said:


> You would be taxed jointly as husband and wife team, but if you open a business in two names you will have to pay social security each, if it's in one name the social security doesn't have to be paid for immediate family just the staff working for you


Thanks Karonnz.

That makes sense of what i have seen recently, and ties up with this book i have bought. Working and living in Greece.

Your a star.


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## xxxxxxJimmy 360 (Oct 8, 2009)

Hi Karonnz.


could i pick your brian a little more. This might seem a silly question but i just want to be clear on stuff. We are hoping to buy the bar in August but not open it until next season. Would we still have to pay a monthly amount of Tax on the business seeing it is not open ? or would i only pay when the place is operational.

:confused2:

Jim


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## karonnz (Mar 8, 2011)

jim & Kaz said:


> Hi Karonnz.
> 
> 
> could i pick your brian a little more. This might seem a silly question but i just want to be clear on stuff. We are hoping to buy the bar in August but not open it until next season. Would we still have to pay a monthly amount of Tax on the business seeing it is not open ? or would i only pay when the place is operational.
> ...


Hi Jim, no you don't have to pay tax until it's open - here's what you do have in this scenario though, you've paid for the business and after the paperwork of the sale is finished you will have to have a new lease drawn up with the landlord (you will obviously be paying rent over the closed period). Once you have that (you need a greek tax number before this), you can officially open your business with the tax dept. (but until you actually start operating the till no taxes or council taxes have to be paid). Once you have done this, you will be able to have invoices cut for any purchases made for this new business and you will need these for future deductions from vat taxes. The downside to this is that you will be paying the TEBE throughout the winter period (owners social security - another thing you must do when you officially open the business). Once you have all the above and some other bits & bobs you have to apply for a business permit - through the council (they will give you a list). Officially until you have this permit you lawfully can't open for business, however it's generally accepted that as long as it has been submitted to the council then it's fine to open before you get it. Vat taxes are now paid every 3mths - if i remember correctly it's June, September etc. Since you are buying a business - which simply means the guy will write you an invoice selling you the business assets, try to make sure the invoice is at the amount you are actually paying for the business - there's a chance that you will be paying a high amount due to goodwill, at the very least try to get the invoice as high as possible (this means you will have high vat tax on the invoice, which as i said will be deducted later from the vat you owe when you start using your till, plus the invoices from any new puchases/work done on the business - you may get through a few vat tax times without actually having to pay anything). You will have to pay council taxes though, which is 3% of your overall till takings (this is paid after the vat tax). Get an accountant - they aren't that expensive and they will will make your life a lot easier. Two things you mustn't forget to do - you have to have a health book when working with food (blood tests and x-ray needed) and 2) you will obviously want music in a bar, you need to pay music rights (ask around how you can contact this person/business). Once you have the receipt for this, then you must also go to the council and apply for a music permit there too, otherwise just with the one you are not legal. This has become a saga, but i hope it helped and i have no problem if you have more questions or didn't understand something i wrote. Take care Karon


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## xxxxxxJimmy 360 (Oct 8, 2009)

karonnz said:


> Hi Jim, no you don't have to pay tax until it's open - here's what you do have in this scenario though, you've paid for the business and after the paperwork of the sale is finished you will have to have a new lease drawn up with the landlord (you will obviously be paying rent over the closed period). Once you have that (you need a greek tax number before this), you can officially open your business with the tax dept. (but until you actually start operating the till no taxes or council taxes have to be paid). Once you have done this, you will be able to have invoices cut for any purchases made for this new business and you will need these for future deductions from vat taxes. The downside to this is that you will be paying the TEBE throughout the winter period (owners social security - another thing you must do when you officially open the business). Once you have all the above and some other bits & bobs you have to apply for a business permit - through the council (they will give you a list). Officially until you have this permit you lawfully can't open for business, however it's generally accepted that as long as it has been submitted to the council then it's fine to open before you get it. Vat taxes are now paid every 3mths - if i remember correctly it's June, September etc. Since you are buying a business - which simply means the guy will write you an invoice selling you the business assets, try to make sure the invoice is at the amount you are actually paying for the business - there's a chance that you will be paying a high amount due to goodwill, at the very least try to get the invoice as high as possible (this means you will have high vat tax on the invoice, which as i said will be deducted later from the vat you owe when you start using your till, plus the invoices from any new puchases/work done on the business - you may get through a few vat tax times without actually having to pay anything). You will have to pay council taxes though, which is 3% of your overall till takings (this is paid after the vat tax). Get an accountant - they aren't that expensive and they will will make your life a lot easier. Two things you mustn't forget to do - you have to have a health book when working with food (blood tests and x-ray needed) and 2) you will obviously want music in a bar, you need to pay music rights (ask around how you can contact this person/business). Once you have the receipt for this, then you must also go to the council and apply for a music permit there too, otherwise just with the one you are not legal. This has become a saga, but i hope it helped and i have no problem if you have more questions or didn't understand something i wrote. Take care Karon



Thank you Very much for the detail. That was what i needed to tie one or two things up.
:clap2:


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## Cairokid (Sep 15, 2009)

karonnz said:


> You would be taxed jointly as husband and wife team, but if you open a business in two names you will have to pay social security each, if it's in one name the social security doesn't have to be paid for immediate family just the staff working for you


When we opened our business we did it in both names as I wanted to be sure there would be no problems if either of us was ill or died.

I am not sure I would do it again - we have to pay two lots of TEBE (social security) which amounts to over 400 euro per month. My husband already had several years TEBE so it is worth it for him as he will eventually get a Greek pension but I'm too old to be able to pay enough years before I retire for it to make any difference to me, and I could claim health care on his wthout us paying double.

Also we have not yet been able to find a way for either of us to sign documents or withdraw money at the bank, apart from using the ATM. They only seem to recognise one official representative.


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## xxxxxxJimmy 360 (Oct 8, 2009)

Cairokid said:


> When we opened our business we did it in both names as I wanted to be sure there would be no problems if either of us was ill or died.
> 
> I am not sure I would do it again - we have to pay two lots of TEBE (social security) which amounts to over 400 euro per month. My husband already had several years TEBE so it is worth it for him as he will eventually get a Greek pension but I'm too old to be able to pay enough years before I retire for it to make any difference to me, and I could claim health care on his wthout us paying double.
> 
> Also we have not yet been able to find a way for either of us to sign documents or withdraw money at the bank, apart from using the ATM. They only seem to recognise one official representative.


Thanks Cairokid.

We will proberley do it in one name and save some Money. 
I don't really know why you can't take money except from the ATM. We can take money from over the counter at the Banks with our Bank book and proff of ID passport and sutch like.


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