Greece to Implement Mandatory B2B E-Invoicing in 2025 – EU VAT Compliance Update

On January 13, 2025, the European Commission published the Council Implementing Decision authorizing Greece to introduce a special measure derogating from Articles 218 and 232 of the EU VAT Directive (Implementing Decision). The Implementing Decision results from Greece's request to derogate from stated articles and introduce mandatory e-invoicing for B2B transactions.

Implications of Implementing Decision

Under the Implementing Decision, Greece may introduce mandatory B2B e-invoicing for resident taxable persons. This means it will not affect non-resident taxable persons, even if they are registered for VAT in Greece.

Mandatory B2B e-invoicing is an upgrade to the myDATA platform, which VAT-registered individuals and businesses use to transmit income and expense transaction data. As stated in the Implementing Decision, e-invoices will be directly reported through myDATA platforms, meaning that all data will be reported to the Tax Authority in real-time, enhancing the accuracy and timeliness of VAT reporting.

Additionally, this system should help the Tax Authority more efficiently identify VAT non-declaration or under-declaration cases. Ultimately, this should contribute to a more successful combat with carousel fraud, which significantly contributes to the VAT gap not just in Greece but on an EU level.

Greece's government stated that mandatory e-invoicing would not be overly burdensome for taxable persons because it is widely used in many economic sectors or public procurement. By enabling prefilled VAT returns and simultaneously fulfilling multiple reporting obligations, administrative costs, errors in the process, and overall compliance should be reduced and simplified.

However, mandatory B2B e-invoicing cannot affect consumers' rights to receive paper invoices in intra-EU transactions.

Conclusion

Under the timeframe provided by the European Commission, mandatory B2B e-invoicing could start as early as July 1, 2025, and last until June 30, 2026. Businesses should begin preparing for the implementation of these rules and adapt all necessary systems to meet the requirements.

Moreover, all taxable persons subject to these rules should monitor the further development of the introduction of mandatory e-invoicing. The Greek government is expected to publish relevant legislation soon.

to Source: European Commission - Council Implementing Decision