Greece Introduces Monthly VAT Returns for Newly Established Businesses

The Governor of the Independent Public Revenue Authority (AADE) has issued a decision modifying the VAT return submission frequency for newly established businesses in Greece. The key change? A mandatory monthly VAT return filing for new entities during their initial two years of operation, regardless of whether they use a single-entry or double-entry accounting system.

This move aims to enhance tax compliance and reduce VAT fraud.

Implementation Timeline for Monthly Frequency of Filing

AADE has provided a clear timeline for how this new regulation will apply, based on the date of VAT registration:

• Businesses starting from 1 April 2025 onward: Mandatory monthly VAT filing from the outset, regardless of the accounting method used.
• Businesses registered between 1 January 2024 and 31 March 2025: Monthly VAT returns will become mandatory from 1 July 2025.
• Businesses registered before 31 December 2023: These businesses may opt in for monthly VAT filing starting from 1 October 2025, but it's optional, not mandatory.

Quarterly Filing Option After the Initial Period

Once businesses reach a 24-month threshold from their commencement date, or 12 months from opting for monthly filings, they may choose to switch to quarterly VAT submissions.

In addition, any subsequent changes between quarterly and monthly VAT periods must be maintained for at least 12 months before making another switch.

According to AADE, monthly VAT reporting strengthens enforcement and oversight, helping to combat tax evasion, prevent abuse by short-lived, non-compliant entities, improve liquidity planning for businesses via smaller, more frequent tax payments.

For newly registered companies in Greece—particularly those with a single-entry bookkeeping system—this policy introduces more frequent compliance requirements. Businesses must ensure their internal systems and advisors are prepared for this increased reporting frequency.

On the other hand, monthly submissions might offer benefits in terms of cash flow management and earlier VAT refunds, depending on each company’s financial profile and operations.

How Can Marosa Help Businesses in Greece?

Our team of VAT compliance experts is ready to assist you in adapting to this regulatory update. Whether you're starting a business in Greece or managing cross-border VAT obligations, we provide tailored solutions to ensure full compliance with local laws, and the use of VATify to ease handling your reporting obligations.