Greek postponed import VAT accounting
The conditions for the application of postponed import VAT accounting in Greece have been updated
25 September, 2016
Import VAT accounting postponed in Greece
. Currently, businesses importing goods in Greece can avoid the payment of import VAT by reporting these VAT amounts as input and output VAT in their VAT return. This system normally has a nil payment effect for the taxpayers (except for partially exempt businesses), hence providing a cash flow advantage for importers in Greece.
How can import VAT accounting be postponed?
To benefit from postponed import VAT accounting, companies must meet certain criteria and send an application to the Greek tax authorities. The most important condition is that the annual value of imports exceeds €300,000,000. In the first five years, the threshold is reduced to €120,000,000. The Greek government has now reduced these thresholds to €250,000,000 and €100,000,000, respectively.
These changes were introduced in the Law 4410/2016 and published in the official Gazette on 3 August 2016.