Eleftheria Paizanou
From May 2022 we will be able to pay by credit cards even in taxis, essentially following in this way the practices applied for many years by other European countries.
In particular, by May 4 at the latest, taxi drivers will have to install a special terminal in their vehicles and are obliged to accept credit cards as a means of payment. That is, they should be able to receive both cash and credit cards from their customers.
The inclusion of taxis in the economic activities which are obliged to accept credit cards is done through the decree on Confirmation and Collection of Taxes (Details of the Implementation of the Obligation to Accept Card Payment Methods). The taxi operation sector, according to the decree, will have the obligation to accept credit cards and will be added to the remaining 95 and more economic activities that since last September have been receiving card payments by law.
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Among the economic activities that have been accepting credit cards for months are retail businesses, service companies in restaurants and leisure areas, but also in several other service areas.
The relevant decree was published yesterday in the Official Gazette of the Republic.
Taxi operators have three months from the date of publication of the decree to comply (some have already done so). In addition, the obligors who will start operating during the last 30 days, will be obliged to accept credit card payments in 4 months, ie in June. According to the decree, taxi professionals who will start working after May will have one month to comply with the law.
Today, in a small number of taxis in Cyprus, special machines for accepting credit cards have been installed.
According to the legislation, those taxi drivers who do not comply and refuse credit card payments will be fined € 2 thousand, which within the month is expected to increase to € 4 thousand, as a new law will be approved by Parliament.
Taxi drivers are not the only professional category added to the decree, as other professional groups have been included in the legislation in recent weeks.
However, during the audits carried out by the Tax Department, it was found that the majority of companies complied with the law and accept credit cards as a means of payment. The specific legislation, according to a government source, contributes to the fight against tax evasion, the preservation of public revenues, the strengthening of citizen protection as well as the facilitation of consumer service.
