Athens GMT +2
8B Chimarras GR – 151 25, Maroussi, Athens Greece
Indirect tax contacts
Tassos Anastassiadis
+30 (210) 288-86415 tassos.anastassiadis@gr.ey.com
Nikoleta Merkouri +30 (210) 288-86572 nikoleta.merkouri@gr.ey.com
Vasiliki Tzourmana +30 (210) 288-6207 vasiliki.tzourmana@gr.ey.com
A. At a glance
Name of the tax
Value-added tax (VAT)
Local name Foros prostithemenis aksias (FPA)
Date introduced 1 January 1987
Trading bloc membership European Union (EU)
Administered by Ministry of Finance (http://www.minfin.gr/)
VAT rates
Standard 24% Reduced 6%, 13% Other Zero-rated (0%) and exempt
VAT number format EL 1 2 3 4 5 6 7 8 9
VAT return periods Monthly and quarterly
Thresholds
Registration
Established None Non-established None
Distance selling EUR10,000
Intra-Community acquisitions None Electronically supplied services EUR10,000
Recovery of VAT by non-established businesses Yes (for businesses established in Norway, Switzerland or the EU)
B. Scope of the tax
VAT applies to the following transactions:
• The supply of goods or services made in Greece by a taxable person
• Reverse-charge services received by a taxable person in Greece
• The intra-Community acquisition of goods from another European Union (EU) Member State by a taxable person (see the chapter on the EU)
• The importation of goods and certain services from outside the EU, regardless of the status of the importer
For VAT purposes, the territory of Greece excludes Mount Athos.
Quick Fixes. Pending introduction of a “definitive” system for the VAT treatment of intra-Com munity supplies of goods to taxable persons, the EU has adopted Quick Fixes for intra-Commu nity trade in goods. For an overview of the Quick Fixes rules, see the chapter on the EU.
The Quick Fixes scheme has been transposed into Greek legislation with a retrospective effect as of 1 January 2020. The areas the rules have impacted are as follows:
• Call-of-stock arrangements – The transport by a taxable person of their business goods to another EU Member State is not considered as a supply of goods, in the context of the stock arrangements at the disposal of an identified purchaser, under certain conditions (Article 7a of the Greek VAT Code).
• Chain transactions – In case of a successive supply of the same goods, which are dispatched or transported from one Member State to another, directly from the first supplier to the last customer in the chain, then the dispatch or transport is ascribed only to the supply made to the intermediary operator (Article 13 par. 6a of the Greek VAT Code).
• VAT exemption of intra-Community supplies of goods – Holding a valid VAT identification number by the acquirer of the goods in another Member State, as well as the accurate submission of the recapitulative statement by the supplier of goods, are considered as substantive conditions for the application of the VAT exemption in intra-Community supplies of goods (Article 28 of the VAT Code as amended and currently in force).
• Rules for the proof of transport of goods – Guidelines are expected to be published by the Greek tax authorities regarding the harmonization of rules for the proof of physical transport of goods, for the purposes of the VAT exemption application in the intra-Community supplies of goods (Article 45a included in the VAT Implementing Regulation No. 282/2011), since the Greek VAT Code provisions differ.
Effective use and enjoyment. To avoid instances of nontaxation or double taxation, EU Member States can apply use and enjoyment rules that allow a service that is “used and enjoyed” in the EU to be taxed or prevent a service that is “used and enjoyed” outside the EU from being taxed. If a service is taxed in the EU under the use and enjoyment provisions, a non-EU supplier of the service may be required to register for VAT in every Member State where it has customers that are not taxable persons. For the information regarding the rules relating to VAT registration, see the chapters on the respective countries of the EU.
In Greece, the following services are subject to the use and enjoyment provisions:
• Short-term lease of means of transport services provided on a business-to-consumer (B2C) basis.
• Telecommunication services or electronically supplied services or radio or television broad casting services provided on a B2C basis.
• Lease of movable goods provided on a B2C basis. In such cases, the place of taxation shifts back to Greece when the use and enjoyment of the services takes place in Greece.
In the case of short-term leasing of professional pleasure boats, which are made available to (tax able or nontaxable) customers in Greece, the place of taxation is outside the European Union, insofar as those pleasure boats are used outside the European Union. The relevant criteria of the “effective use and enjoyment” and the proof of their fulfillment will be determined by a decision still yet to be issued by the Greek VAT administration.
Transfer of a going concern. A transfer of a going concern (TOGC) is not considered a transfer/ supply within the scope of VAT to the extent that the business is transferred as a whole, unit/ segment or part of it between taxable persons with full right of deductions, and the recipient continues the business of the transferor.
C. Who is liable
A taxable person is any entity or individual that makes taxable supplies of goods or services, intra-Community acquisitions, imports of goods into Greece or distance sales (if the relevant annual threshold is exceeded), in the course of business in Greece.
Exemption from registration. The VAT law in Greece does not contain any provision for exemp tion from registration, as there is no registration threshold.
Voluntary registration and small businesses. The VAT law in Greece does not contain any provi sion for voluntary registration, nor special VAT registration rules for small businesses.
Group registration. Group VAT registration is not allowed in Greece.
Holding companies. In Greece, a pure holding company cannot be a member of a VAT group, as group VAT registration is not allowed in Greece. A pure holding company will still be required to be registered for VAT in Greece, even if it makes no taxable supplies. This would be declared at the time of registration. A VAT registration must be made irrespective of the level of taxable supplies.
Cost-sharing exemption. The VAT cost-sharing exemption, in accordance with VAT Directive 2006/112/EEC Article 132(1)(f), has not been implemented in Greece.
Fixed establishment. The Greek tax authorities have not issued any guidelines as to the concept of a fixed establishment for VAT purposes, thus reference is made only to the Council Implementing Regulation (EU) No 282/2011 as in force.
Non-established businesses. A “non-established business” is a business that does not have an establishment in Greece. A foreign or non-established business should register for VAT in Greece, if it engages in any of the following taxable activities:
• Supply of goods that are located in Greece at the time of supply
• Intra-Community acquisitions
• Distance sales in excess of the annual threshold (EUR10,000)
• Imports
• Services, to which the reverse charge does not apply
Apart from the above cases, the reverse charge generally applies to supplies of services made by non-established businesses to taxable persons (subject to the default business-to-business (B2B) rule). Under this measure, the taxable person that receives the supply should account for the Greek VAT due. If the reverse charge applies, the non-established business is not required to register for Greek VAT.
The reverse charge does not apply to supplies of goods or services made to private persons.
Tax representatives. A foreign business, non-established and non-registered in Greece, should obtain a Greek VAT registration number before making taxable supplies in Greece.
In general, a non-EU business must appoint a tax representative, called locally a VAT fiscal representative, to register for VAT. (An exemption applies for registration under the non-Union scheme of OSS.) The VAT fiscal representative should be given, among other documents required by law, a power of attorney to act on behalf of the non-established business.
The VAT fiscal representative should be appointed and obtain registration before the non-estab lished business begins to make taxable supplies. The VAT fiscal representative may be any person engaged by the business who is a resident and VAT liable in Greece, such as a legal entity or an accountant. The VAT fiscal representative undertakes compliance procedures and may be held jointly liable for VAT debts with the foreign business that it represents.
An EU business is not required to appoint a VAT fiscal representative to register for VAT in Greece but may opt to do so. If a VAT fiscal representative is appointed at the foreign EU busi ness’s option, such VAT representative undertakes compliance procedures and may be held jointly liable for VAT debts of the foreign EU business.
Reverse charge. In general, VAT due on cross-border B2B supplies of services shall be due at the place where the customer is situated. Where the reverse-charge procedure applies, the Greek recipient must act as both supplier and recipient of the services for VAT purposes. That is, the Greek customer should account for both output and input tax on the VAT return.
Domestic reverse charge. Domestic reverse charge applies in case of supplies of scrap, recyclable goods and gas emission rights pursuant to Article 39a of the Greek VAT Code on certain conditions.
Moreover, a domestic reverse-charge mechanism applies to construction works on real estate provided by private contractors to local municipalities or other public bodies, where the latter are acting as taxable persons for VAT purposes. In some of these cases, no Greek VAT is charged on the invoice issued by the private contractor (supplier) to the municipality or other public body, and the supplier is not required to account for VAT but is required to indicate on the invoice a special wording indicating application of this regime as follows: “Article 39A of the Greek VAT Code – domestic reverse charge.” The supplier has a full right to deduct input tax incurred in relation to such supplies.
In addition, a domestic reverse charge applies to B2B supplies of mobile phones, game consoles, PC tablets and laptops. For such supplies, the Greek supplier must issue an invoice as a domestic supply and not charge VAT and include special invoice wording indicating application of this regime. The buyer must account for VAT via the reverse-charge mechanism. As of 1 December 2019, the iden tity of the buyer as taxable person with the right to deduct input tax should be verified through a specific online process powered by the Independent Authority of Public Revenues.
Digital economy. Specific VAT rules apply to cross-border supplies of goods and services sold via the internet (e-commerce) in all EU Member States with effect from 1 July 2021. These new rules apply to all direct sales to nontaxable persons (in practice these are mostly private individuals), but we refer to these rules as e-commerce VAT rules because most of these transactions are con ducted via the internet. In general, the place of supply is in the country of consumption, i.e., where the goods are shipped to or where the buyer of the goods or services resides, subject to any “use and enjoyment” provisions that may override this rule (see Section B, Effective use and enjoyment subsection above). Therefore:
• For supplies of services made by a nonresident supplier to a business customer (B2B), the busi ness customer is responsible for accounting for the VAT due, using the reverse charge.
• For supplies of goods made by a nonresident supplier to a business customer (B2B), where the goods are transported from another EU Member State, the business purchasing the goods is responsible for accounting for the VAT due, as an intra-Community acquisition. If the goods come from outside the EU, the purchaser may have to report an importation of goods.
• For supplies of goods or services made by a nonresident supplier to a final consumer (B2C), the supplier is generally responsible for charging and accounting for the VAT due at the rate applicable in the customer’s country (unless the supplier’s sales fall beneath the distance selling threshold of EUR10,000 with effect from 1 July 2021). This VAT can be reported using a single VAT registration, using a “One-Stop-Shop” mechanism.
For more details about intra-EU distance sales, see the chapter on the EU.
Effective 1 July 2021, an e-commerce supplier may have a choice of how to account for VAT on its B2C supplies.
Local VAT registration. A nonresident supplier may choose to register for VAT in each Member State and account for VAT on all supplies made and recover input tax in accordance with local rules (see the Non-established businesses subsection above). Non-EU businesses may be required to appoint a fiscal representative for accounting for the VAT due on these transactions.
In Greece, the competent authority for the registration of persons in the special schemes is “Section C2 – Special VAT schemes of the Tax Office of Foreign Residents and Alternative Taxation of Domestic Tax Residents.”
Non-Greek residents are obliged to submit, by electronic means, a declaration of the commencement and cessation of their activities under the special schemes described below or of a change thereof, in such a way that it no longer fulfills the conditions for their inclusion in these special schemes. Online applications are provided for the fulfilment of this purpose by the International Authority of Public Revenue (IARP).
One-Stop Shop. Effective 1 July 2021, a supplier can choose to account for the VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU. Unlike the previous Mini One-Stop-Shop (MOSS) scheme that applied until 30 June 2021, the OSS is not limited to cross-border supplies of electronic services, telecommunication services and broadcasting ser vices.
The OSS is an electronic portal that allows businesses to:
• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return
The OSS can be used by businesses established in the EU and outside the EU. If a supplier, or a deemed supplier, decides to register for the OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under the OSS.
In Greece, the non-Union OSS is a special scheme for services supplied to nontaxable persons who are established or have their place of residence or habitual residence in Greece or in any other Member State by taxable persons non-established within EU; the provisions are stated by Article 47B of the Greek VAT Code.
In Greece for suppliers that fall under the scheme of non-Union OSS, the information to be provided upon the time of registration, must include the following:
• Name or surname
• Postal address
• Email addresses and websites it makes available on the internet
• Tax identification number (TIN) allocated to them in their country, if the legislation of their country provides for the issuance of a TIN
• Statement that it does not have the head or registered office of economic activity nor has a permanent establishment in a Member State; a VAT number is issued in this case
After submitting the declaration of commencement of the taxable activity, a VAT number is issued with the prefix EU, for the application of this scheme, which is notified by electronical means. These persons are registered in a special register of the OSS scheme.
In Greece, the OSS is a special scheme for intra-Community distance sales of goods for supplies of goods within a Member State made by electronic interfaces facilitating those supplies and for services supplied by taxable persons established within EU, but not in the Member State of con sumption; provisions are stated by the Article 47C of the Greek VAT Code.
In the case of suppliers that fall under the scheme of OSS, they are registered by using the VAT number that is already granted to them by an EU Member State.
Those not allowed to register under the above special schemes are taxable persons and interme diaries who:
• Are registered in the corresponding special scheme of another Member State
• Have been registered in OSS of other Member States and their mandatory commitment period for the selection of a Member State of registration has not expired
• Are in a period of exclusion from the use of all special schemes, in all Member States, in accordance with the provisions of Article 58b of Implementing Regulation (EU) 282/2011, as in force from 1 July 2021.
• Are small enterprises subject to the special scheme of Article 39 of the VAT Code either directly or through tax intermediaries, unless they choose to be deleted from the special scheme of small enterprises
The Greek tax authorities may reject the application for registration if the conditions are not met and specifically where:
• The information provided at the time of application is incomplete.
• The information provided cannot be verified.
• The taxable person or intermediary is not allowed to apply for the special arrangements
• The Greek VAT number of the taxable person who wishes to register in the Union OSS of the VAT Code is invalid or deactivated or is suspended or is in a state of inactivity. The same applies in cases where the taxable person or the intermediary wishes to register in the special scheme of IOSS.
The application of the OSS schemes is optional.
For more details about the operation of the OSS, see the chapter on the EU.
Import One-Stop Shop. Effective 1 July 2021, the Import One-Stop-Shop (IOSS) scheme applies for B2C distance sales of goods from outside the EU.
Effective 1 July 2021, VAT is due on all commercial goods imported into the EU regardless of their value. The actual supply is subject to VAT in the country where the goods are imported (the country of destination). The IOSS facilitates the declaration and payment of VAT due on the sale of low-value goods (i.e., consignments valued at less than EUR150 per consignment). It allows suppliers selling low-value goods dispatched or transported from a non-EU country to customers in the EU to collect, declare and pay the VAT due. If the IOSS is used, the importation into the EU is exempt from VAT.
In Greece, the following may be entered under the special scheme of IOSS of the Article 47d of the VAT Code:
• Taxable persons established in Greece who sell goods imported from outside the EU
• Taxable persons not established within the Union and established in a non-EU country with which the EU has concluded an agreement on mutual assistance of a similar extent to that of the Council Directive 2010/24/EU and by Council Regulation (EU) No 904/2010
• Intermediaries established in Greece who wish to join the scheme to act as intermediaries
• Taxable persons, whether established within the EU or not, and are represented by an interme diary established within the territory of the country
The use of the IOSS special scheme is not mandatory. If VAT is not collected via the IOSS scheme, the importation of goods into the EU is subject to import VAT in the country of final destination and the Member State can decide freely who is liable to pay the import VAT, which could be the customer or the seller (or an electronic interface).
The taxable person who uses this special scheme is granted a unique individual VAT tax registra tion number for the application of the special scheme with the prefix IM, which is notified by electronic means.
The intermediary is granted a unique individual tax registration number with the prefix IN, by electronic means and a unique individual VAT tax registration number with the prefix IM for the application of this special regime for each taxable person for whom it has been set. The VAT tax registration number or tax registration number issued shall be used exclusively for the purposes of this special scheme.
The user of the OSS and IOSS submits, by electronic means, a VAT return for each calendar quarter, whether supplies under this special regime have been provided or not. The VAT return is submitted by the end of the month following the end of the tax period covered by the return. Required modifications of the declared data are included in the next VAT return, within three years from the expiration of the deadline for submission of the initial return.
The tax is paid simultaneously with the submission of the return and at the latest at the expiration of the deadline for its submission, in euros, to a bank account designated specifically for this purpose and kept at the Bank of Greece, with reference to the relevant VAT return. There is no right to deduct the input tax paid in Greece, but there is a right to refund. Exceptionally, if the subject in question is required to account for VAT in Greece for activities not covered by this scheme, then it is entitled to a deduction of input tax paid in Greece and relates to their taxable activities under this scheme.
For more details about the IOSS, see the chapter on the EU.
Postal Services and Couriers Scheme. If the IOSS is not used and the customer is liable for the import VAT due on the supply (and importation) of consignments with a small intrinsic value (i.e., less than EUR150), the VAT can be collected using the special scheme for postal services and couriers.
In Greece, the Postal Services and Couriers Scheme is known as “Special Arrangements” scheme can be used when the IOSS scheme is not used and only if the Member State of destination of the goods coincides with the Member State of import.
• The parcel consignee becomes liable to pay the respective import VAT. However, VAT is paid by the person who brings the goods before the customs office on behalf of the consignee, i.e., as a rule, the international courier companies and the domestic postal service provider (ELTA).
• The VAT payment is deferred until the 16th day of the month following the one when it was assessed, whereas no special permission and/or guarantee is required.
• Persons using Special Arrangements are obliged to maintain import records for a period of 10 years.
For more details about the special scheme for postal services and couriers, see the chapter on the EU.
Online marketplaces and platforms. Under the new EU VAT e-commerce rules, effective 1 July 2021, taxable persons that “facilitate” certain B2C sales of goods are deemed to have purchased and then supplied those goods themselves. This means that the single supply from the “underlying” supplier to the final consumer is split into two deemed supplies:
• A supply from the supplier to the facilitator (deemed B2B supply).
• A supply from the facilitator to the final customer (deemed B2C supply). Any intermediation service provided by the facilitator is disregarded for VAT purposes.
This provision does not cover all sales facilitated via the facilitator. It only covers distance sales of goods imported from non-EU jurisdictions in consignments with an intrinsic value not exceed ing EUR150. The jurisdiction of residence of the supplier using the facilitator is irrelevant. The supply to the facilitating platform is VAT exempt and the supplies made by that platform follow the e-commerce VAT rules as described above. In addition, the provision also covers sales within the EU, if the supplier is not established within the EU. This applies to both local ship ments within one Member State as well as intra-Community shipments. In both cases, the final customer must be a nontaxable person.
In Greece, there are no additional specific local rules that apply.
For more details about the rules for online marketplaces, see the chapter on the EU.
Vouchers. As of 1 January 2019, vouchers, which can have physical or electronic form, are accept able as consideration in exchange for the supply of goods or services.
The goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.
Vouchers are distinguished between “single-purpose vouchers” (SPVs), where the place of sup ply of the goods or services to which the voucher relates and the VAT due on those goods or services are known at the time of issue of the voucher, and “multipurpose vouchers” (MPVs), which are vouchers other than SPVs.
The essential difference between the two categories of vouchers is their VAT treatment. In SPVs, the taxable event is their distribution and not the subsequent supply of goods or services. In MPVs, VAT is due at the time of their redemption, when the goods or services to which the voucher relates are supplied, whereas any prior transfer of them should not be subject to VAT.
Intermediary services for the distribution of vouchers that are supplied by taxable persons should be subject to VAT.
Transport tickets, admission tickets to cinemas and museums, postage stamps and instruments entitling the holder to a discount upon purchase of goods or services but carrying no right to receive such goods or service should not be treated as vouchers.
Registration procedures. Businesses established in the EU that are required to register locally in Greece can do so and obtain a Greek VAT registration number:
• By directly applying electronically in a simplified process aimed at EU businesses with no prior registration or establishment in Greece, in which case the appointment of a VAT fiscal representative is not required
• By filing in hard copy an application form along with all required documents (power of attorney, standard tax forms provided by the Greek tax office, a memorandum of association and a certificate of taxable status) and by appointing locally a VAT fiscal representative. Due to COVID-19, such hard copy applications could be sent via email (along with the supporting documents).
Businesses established outside the EU that are required to register locally for VAT purposes in Greece are required to appoint a local VAT fiscal representative. No electronic registration is available.
In some cases, the appropriate local tax office shall not grant the requested Greek VAT registration number to the applicant (foreign business), for example, if the business had already obtained a Greek VAT registration number.
Deregistration. A taxable person that ceases to be required to account for Greek VAT may opt to deregister. If such taxable person is not deregistered, he must continue complying with all rele vant filing obligations.
Changes to VAT registration details. Changes relating to the VAT registration details must be noti fied before the Registry Department of the competent tax office within 30 days from the time the change was made.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero rate.
The VAT rates are:
• Standard rate: 24%
• Reduced rates: 6%, 13%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services unless a specific measure provides for a reduced rate, the zero rate or an exemption.
Super reduced VAT rates (by 30% compared to the standard VAT rates) apply to the islands of Lesvos, Chios, Samos, Kos and Leros all affected by the refugee crisis without time limitation, subject though to revocation by Ministerial Decision. Due to COVID-19, during 2020 and 2021, Greece had a temporary reclassification of specific products and services from the standard rate to the reduced VAT rate in the context of the measures undertaken for COVID-19. These are noted below under the applicable VAT rate sections.
Examples of goods and services taxable at 0% (i.e., exempt with credit)
• Exports of goods outside the EU and related services
• Intra-Community supplies of goods
• Services supplied to a taxable person established in and outside the EU under the B2B default rule in the provision of services
• Vaccines against COVID-19, approved by the EMA or the EU Member States, and any related services (a temporary zero-rating from 1 July 2021 and until 31 December 2022)
Examples of goods and services taxable at 6%
• Books and music books, under the tariff code classification 4904 (with effect as of 31 July 2020)
• Newspapers
• Magazines
• Theatre and concert tickets (a temporary reduction applicable from 1 June 2020 till 30 June 2022)
• Supply of electricity and gas, as well as district sales (in effect as of 20 May 2019)
• Protective masks and gloves, antiseptic products, wipes and relevant products, soap and other products used for personal hygiene purposes, ethyl alcohol, if used as raw material for the production of antiseptics (a temporary reduction, applicable from 20 March 2020 to 30 June 2022)
• Residues and waste of industrial foodstuffs and animal feed, excluding dog or cat food (appli cable from 1 October 2021)
• Defibrillators (a temporary reduction, applicable from 31 July 2021 to 31 December 2022)
• Dialysis, hemofiltration, hemodiafiltration and plasmapheresis filters, and hemodialysis, hemo filtration, hemofiltration and plasmapheresis (tariff code 9018) (applicable from 23 December 2020 until 30 June 2022, and after this date these items are subject to the reduced VAT rate of 13%)
• Electronic publications of visual and audio books, except for publications intended solely or primarily for advertising purposes and publications consisting entirely or exclusively of video or audio music content (applicable from 1 July 2021)
Examples of goods and services taxable at 13%
• Hotel accommodation services
• Food services supplied by restaurants, grills, taverns, coffee shops, cafeterias, patisseries and other related businesses (other than entertainment centers)
• Provision of services for boarding schools, structures for disabled persons and structures pro viding accommodation to people with mental disabilities, mental disorders and use of drugs
• Oil types
• Meat and fish preparations
• Sugars and sugar confectionery
• Cocoa and cocoa preparations
• Miscellaneous edible preparations based on cereal, flour, starch or milk
• Preparations of vegetables, fruit, nuts, and fruit and vegetable juices
• Coffee, tea, preparations based on these products and coffee substitutes
• Pastes, preparations for sauces and sauces, preparations for soups and broths, ice creams, vin egar and salt
• Nonalcoholic beverages, without addition of alcohol in any proportion (tariff code classifica tion 2202) and gaseous water (tariff code classification 2201) (a temporary reduction, appli cable from 1 June 2020 to 30 June 2022)
• Services provided by cafes, confectioneries, restaurants, grills, wineries and other related busi nesses (except for entertainment businesses) with the exception of beverages containing alco hol in any proportion (a temporary reduction, applicable from 1 June 2020 to 30 April 2022)
• Transportation of persons and their luggage (a temporary reduction, applicable from 1 June 2020 to 30 June 2022)
• Sport games tickets (a temporary reduction, applicable from 1 September 2020 to 30 June 2022)
• Cinema tickets (a temporary reduction, applicable from 1 June 2020 to 30 June 2022)
• Imported art objects, associations or antiquities and objects of artistic value when delivered by their creator or his successors (a temporary reduction applicable from 26 October 2020 till 30 June 2022)
• Zoo tickets (a temporary reduction, applicable from 5 February 2020 to 30 June 2022)
• Services from gyms (a temporary reduction from 1 October 2021 until 30 June 2022)
• Services from dance schools (a temporary reduction from 1 October 2021 until 30 June 2022) and provided that they are not exempt
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Postal services
• Finance
• Insurance
• Certain sales and rental of immovable property under conditions
• Medical services supplied by public law and other not-for-profit organizations
• Health care
Option to tax for exempt supplies. Optionally, commercial lease of real estate may be subject to VAT instead of stamp duty, upon mutual agreement of the lessor and the lessee. The lessor must submit a specific request to the appropriate tax office.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.”
The basic time of supply for goods is when the goods are put at the purchaser’s disposal. If the supplier undertakes the obligation to forward the goods to the buyer, the time of supply is at the beginning of the transportation. For installed goods, the time of supply is when installation is
completed. If the supplier issues an invoice before the basic time of supply, the time of supply becomes the invoice date.
In general, the time of supply for services is when they are performed. If the supplier issues an invoice before the basic time of supply, the time of supply is the invoice date.
Deposits and prepayments. Payments received before the supply of goods or services or the issuance of a VAT invoice are known as advance payments. Advance payments do not generally create a tax point (they create a tax point only in the event of an intra-Community supply of services).
Continuous supplies of services. If services are provided continuously, the tax point is the time that any amount is considered as payable.
Goods sent on approval for sale or return. The tax point for a local supply of goods sent on approval for sale or return is when the goods are approved for receipt and sold. If the goods are returned, there is no supply.
Reverse-charge services. There are no special time of supply rules in Greece for supplies of reverse-charge services. As such, the general time of supply rules applies (as outlined above). This means that the time of supply of services is when the services are performed unless an invoice is issued before the basic time of supply.
By way of derogation in case any advance payment is collected prior to the completion of the EU cross-border services, the tax point is considered to be at that time. A special tax record (titled “special tax record for VAT purposes in case of intra-EU supplies of services”) is issued at the time of the advance payment collection and has the same content as a VAT invoice.
For continuous supplies of intra-EU cross-border services, the VAT becomes due by the end of the tax year, to the extent that no installments have been paid during the period of the supply. A special tax record should be issued.
The reverse-charge mechanism only applies to B2B cross-border services, not goods. For intraEU acquisition of goods, refer to the Intra-Community acquisitions of goods subsection below.
Leased assets. Lease of assets is considered to be a supply of services; thus, the tax point is the time that any amount is considered to be payable. If at the expiration of the lease agreement, the lessee takes ownership of the assets, this should be considered to be a supply of goods and the tax point shall be the time when the sale is performed.
Imported goods. The time of supply for an importation is when the importation occurs or when the goods leave a duty suspension regime.
Intra-Community acquisitions. For intra-Community acquisitions, the time of supply is when the goods are put at the purchaser’s disposal. If the supplier undertakes the obligation to forward the goods to the buyer, the time of supply is the beginning of the transportation. VAT is due on the issuance of an invoice or by the 15th day of the month following the month in which the supply took place, whichever is the earlier.
Intra-Community supplies of goods. For intra-Community supplies, VAT is due upon the issuance of the respective invoice and at the latest on the 15th day of the month following the one on which the supply was affected.
Distance sales. The time of supply rule for the supply of distance sales is at the beginning of the transportation.
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. A taxable person generally recovers input tax by deducting it from output tax, which is VAT charged on supplies made.
Input tax includes VAT charged on goods and services supplied within Greece, VAT paid on imports of goods and VAT self-assessed on the intra-Community acquisition of goods, reversecharge services and domestic reverse charge of goods.
A valid tax invoice or customs document should generally accompany an input tax refund claim.
The time limit for a taxable person to reclaim input tax in Greece is five years.
Nondeductible input tax. Input tax may not be recovered on purchases of goods and services that are not used for business purposes (for example, goods acquired for private use). In addition, input tax may not be recovered for some items of business expenditure.
The following lists provide some examples of items of expenditure for which input tax is not deductible and examples of items for which input tax is deductible if the expenditure is related to a taxable business use.
Examples of items for which input tax is nondeductible
• Hotel accommodation
• Business gifts valued at more than EUR10
• Lease, purchase, hire and maintenance of cars
• Fuel for cars
• Business entertainment
• Home telephone bills
• Taxis
• Public transport
• Food, drink and tobacco
Examples of items for which input tax is deductible (if related to a taxable business use)
• Books
• Attending conferences and seminars
• Lease, purchase, hire and maintenance of vans and trucks
• Fuel for vans and trucks
• Mobile telephones
• Utilities
Partial exemption. Input tax directly related to making exempt supplies is not generally recover able. If a Greek taxable person makes both exempt and taxable supplies, it may not recover input tax of common expenses in full. This situation is referred to as “partial exemption.” Exempt with credit supplies are treated as taxable supplies for these purposes.
The amount of input tax that may be recovered is calculated in the following two stages:
• The first stage identifies the input tax that may be directly allocated to taxable supplies and exempt supplies. Input tax directly allocated to taxable supplies is deductible, while input tax directly related to exempt supplies is not deductible.
• The second stage identifies the amount of the remaining input tax (for example, on general business overhead) that may be allocated to taxable supplies and recovered. The calculation is based on the value of taxable supplies made compared with total turnover. The partial exemp tion recovery percentage is rounded up to the nearest whole number (for example, a recovery percentage of 75.1% is rounded up to 76%).
Approval from the tax authorities is not required to use the partial exemption standard method in Greece. Special methods are allowed in Greece but require approval from the Head of the Tax Office, upon meeting certain conditions. However, it is not common for taxable persons to use a special method in Greece.
Capital goods. Capital goods are items of capital expenditure that are used in a business over several years. Input tax is generally deducted in the tax year in which the goods are acquired. The amount of input tax recovered depends on the taxable person’s partial exemption recovery posi tion in the tax year of acquisition. However, the amount of input tax recovered for capital goods should be adjusted over time, if the taxable person’s partial exemption recovery percentage changes during the adjustment period.
In Greece, the capital goods adjustment applies to the following assets for a period of five years:
• Buildings (in case of leased buildings, the adjustment period expands to 10 years at the level of the lessor).
• Other movable capital assets and certain intangible goods (i.e., the rights to use patents, designs, trademarks).
• Capitalized expenses, which are considered to be, inter alia, the expenses for the services related to the construction of capital goods, which are added to the value of the capital good (i.e., they are capitalized) and they are subject to adjustment together with the initial value of the goods. Please note that for VAT purposes, the granting of use of an intangible asset is considered as provision of services.
In the tax period of first use, the input tax is deducted according to whether, and to what extent, the goods are used for taxable activities. One fifth of the total input tax is attributed to each year of the adjustment period. At the end of each year, an adjustment of the input tax has to be made according to the use of the goods (exempt/taxable) in that particular year. When the use of the goods in an adjustment year has changed compared to the use of the goods in the tax period of first use, part of the input tax must be paid to or can be recovered from the authorities.
The final input tax adjustment is performed annually on the basis of the overall data of the tax year, derived from the respective VAT returns filed throughout the year.
Refunds. If the amount of input tax recoverable in a period exceeds the amount of output tax payable in that period, the taxable person has an input tax credit. If a VAT return results in an input tax credit, the amount may be carried forward to offset output tax payable in subsequent periods. Alternatively, the taxable person may request for the VAT refund by completing the relevant tax box in the VAT return (no separate filing of an application is required in this respect).
Theoretically, a tax audit is not a prerequisite for the refund. However, under certain circum stances, a taxable person may be selected for a tax audit prior to being granted the refund, based on a risk analysis performed by the Directorate of the Ministry of Finance. Input tax amounts claimed for refund as of 1 July 2017 by taxable persons who have been granted an “authorized economic operator” license or a “simplified procedure license” or taxable persons engaged in exports or intra-EU deliveries of goods, may be refunded, under certain conditions, without any VAT audit to be performed.
For VAT refund claims not exceeding EUR10,000 for which no provisional tax assessment has been issued until 11 October 2018, the refund process shall be made without the conduction of the VAT audit, subject to any statute of limitation provisions.
Pre-registration costs. Input tax incurred on pre-registration costs in Greece is not recoverable.
Bad debts. Generally, no adjustment can be made concerning bad debts. Any amount of VAT charged must be paid to the Greek State, even if it has not been collected by the taxable person from their customer. As an exception to this general rule, relief may be sought by taxable persons
in case the customer has been subject to a special “rehabilitation” or “special liquidation” or “bankruptcy” procedures as provided by Greek Insolvency Code bankruptcy legislation and provided that a court order has been issued beforehand; however, this exception has rarely been applied in practice.
Noneconomic activities. Input tax incurred on purchases that are used for noneconomic activities is not recoverable in Greece.
G. Recovery of VAT by non-established businesses
Greek VAT authorities refund VAT incurred by businesses that are neither established nor regis tered for VAT in Greece. Non-established businesses may claim Greek VAT to the same extent as VAT-registered businesses.
EU businesses. For businesses established in the EU, refunds are made under the terms of the EU Directive 2008/9/EC. The VAT refund procedure under the EU Directive 2008/9 may be used only if the business did not perform any taxable supplies in Greece during the refund period (excluding supplies covered by the reverse charge). For full details, see the chapter on the EU.
Please find below specific rules for Greece:
• Claims should be submitted electronically in either Greek or English and should be accompa nied by scanned copies of relevant invoices placed in an electronic archive or file.
• The appropriate Greek authority for this purpose is the following: The Hellenic Republic
Ministry of Finance, VAT Division
Directorate of VAT Administration and Resources Sina 2-4 10672 Athens Greece
• If the refund application is approved, refund of the approved amount should be paid within 10 working days after the expiration of the deadline to respond. Interest is payable to the applicant on the amount of the refund to be paid if the refund is paid after the last date for payment. Interest due is calculated according to the rules applicable for payment of default interest to Greek taxable persons.
Non-EU businesses. For businesses outside the EU, Greece does not refund VAT under the terms of the EU 13th Directive. This includes the United Kingdom (UK). However, this is with the exception of businesses established in Norway, Switzerland and Northern Ireland. A Norwegian or Swiss business may claim Greek VAT refunds to the same extent as a Greek taxable person. Transactions involving the movement of goods between Northern Ireland and the EU Member States are treated as intra-Community acquisitions and supply of goods, for a four-year period from 1 January 2021.
Please find below specific rules for Greece:
• The refund application must relate to the supply of goods and services or imports covering a period of at least three months and not exceeding one calendar year.
• The period may be less than three months when it represents the remainder of a calendar year.
• Refund claim is submitted in the Member State of establishment by 30 September of the cal endar year following the return period.
• Claims relating to Norwegian and Swiss businesses must be filed in hard copies before the VAT Division of the Greek Ministry of Finance.
Late payment interest. In Greece, interest is not paid on late refunds to non-established busi nesses (for both EU and non-EU non-established businesses).