VAT Tax Guide for Greece

April 24, 2024
VAT Tax Guide for Greece

This guide provides an overview of the VAT system in Greece, essential for businesses involved in the sale of goods and services within the country.

VAT Information

Current VAT Rates in Greece

Standard rate: 24%

Reduced rates: 13% and 6% for specific goods and services, including food, pharmaceuticals, and passenger transport.

Recent Changes

  • Extension of Reduced VAT Rates: Greece has extended the application of reduced VAT rates, particularly for the islands of Chios, Kos, Leros, Lesvos, and Samos, which now benefit from specially reduced rates to support economic recovery in these areas.

  • Reclassification of Goods and Services: A wide range of goods and services, including some food items and restaurant services, now qualify for these reduced rates, making it more affordable for businesses and consumers alike.

  • VAT Treatment of Vouchers: Following EU Council Directive 2016/1065, Greece has updated its VAT Code to regulate the treatment of vouchers more clearly. The directive distinguishes between single-purpose vouchers, taxed at the point of sale, and multi-purpose vouchers, taxed upon redemption.

  • Effective Use and Enjoyment Rule: This rule has been applied to adjust the place of taxation for certain services, such as short-term leasing of pleasure boats, ensuring VAT is accounted for where services are actually consumed.

Thresholds for VAT Registration

  • Resident Businesses: Typically, resident businesses in Greece must register for VAT if their annual taxable turnover exceeds €10,000. This threshold applies to the total value of taxable supplies.

  • Non-Resident Businesses: There is generally no threshold for non-resident businesses; they must register for VAT if they are supplying taxable goods or services in Greece, regardless of the turnover.

  • Intra-EU Distance Sales of Goods and B2C Supplies of Services: As part of the EU-wide rules implemented in July 2021, the threshold for distance sales of goods and certain cross-border supplies of services across the EU is set at €10,000. Above this threshold, VAT registration in the customer's country (including Greece) is required.

  • Non-EU Established Suppliers of Electronically Supplied Services: Non-EU businesses providing electronically supplied services to consumers in Greece are required to register for VAT under the non-Union One-Stop Shop (OSS) scheme, irrespective of the amount.

Process and Documentation Required for VAT Registration:

  1. Application: Businesses can apply for VAT registration through the TAXISnet system, the online portal provided by the Greek Public Revenue Authority.

  2. Documentation: Required documents typically include proof of identity, details of the company (such as the Articles of Association), and evidence of economic activity in Greece.

Tax Representative in Greece

Non-EU businesses often need to appoint a fiscal representative in Greece for VAT purposes. This representative handles VAT registration, returns submission, and communications with the tax authorities.

Official Registration Portals

TAXISnet: This is the main electronic system used for tax-related electronic services in Greece, including VAT registration and filing.

VAT Filing and Payment

  • Due Dates: Monthly for large businesses and quarterly for smaller enterprises.

  • Filing Process: Electronic submission via the TAXISnet system.

  • Payment Methods: Bank transfers and online payment systems are widely accepted.

Common VAT Deductions and Exemptions

VAT for International Businesses

  • Imports and Exports: Regulations on VAT for international trade, especially within the EU.

  • E-Commerce: VAT considerations for online businesses based in or selling to Greek consumers.

Additional Resources

For official guidelines, visit the Greek Ministry of Finance website.

Best Regards, Vatabout team