Greece
VAT Basics
VAT Deduction Limits in Greece
Input VAT is generally deductible as long as the goods or services are used for business purposes. Additionally, there are certain goods and services subject to VAT deduction limits:
- Entrance ticket to conferences: 100% deductible.
- Accommodation and hotel: 0% deductible.
- Restaurants: 0% deductible.
- Lease, purchase, and fuel for cars: 0% deductible.
- Public transport: 0% deductible.
- Fuel for vans and trucks: 100% deductible.
- Entertainment expenses are 0% deductible, and the same applies to business gifts of a value of more than EUR 10.
- Telephone: 100% deductible.
- Books and equivalent materials: 100% deductible.
A valid and fully compliant VAT invoice must be issued for each expense on which VAT is deducted.
- Find here official information about the VAT deduction limits in Greece. Also, here you can find more information about the goods and services without right of deduction.
- Check here information about pro-rata rule. Similarly, here you can find more information about VAT deduction limits and pro-rata rule.
- Have a look here at the EC tool for VAT refund codes per country.
Statute of Limitations in Greece
The statute of limitations in Greece is five years calculated from the end of the tax year in which the deadline to submit the VAT return expires.
The statute of limitations period determines the periods on which the tax authority can go back to review the information declared, and apply additional VAT assessments, penalties or interests.
The statute of limitations also determines the period a taxpayer can voluntarily correct any errors on past submissions, as well as to deduct input VAT.
Tax point rules in Greece
The tax point is the time when VAT becomes due. VAT due should be distinguished from VAT payable. VAT is due when the tax point occurs. VAT is payable between the day after the end of the reporting period and the due date to submit and pay the VAT return.
- General rule: Tax is due by the time the goods are put at the customer’s disposal, or by when the service is performed. In case of goods supplied upon installation, the VAT is due when the installation is completed. When an invoice is issued before the tax points described, the tax is due by the date of the invoice.
- Prepayments: Prepayments or advanced payments do not generally create a tax point. The only scenario is in case of intra-Community supplies of services.
- Continuous supplies of services: if the customer is liable to self-assess the VAT, then the VAT becomes due by the end of the calendar year.
- Intra-Community acquisitions and supplies: Tax point occurs on the invoice date or the 15th day of the month following the month in which the invoice was issued, whichever occurs earlier.
- Import: Tax point occurs when the goods are imported according to the relevant import documents.
Find here more information.
VAT registrations and simplifications in Greece
When do I need a Greek VAT number?
Generally, a foreign business must register for VAT (Value Added Tax) in Greece as soon as a taxable supply is made. The following are the usual examples of taxable transactions:
- Domestic supply of goods not reverse charged: A supply of goods located in Greece where the reverse charge does not apply requires a VAT registration of the supplier.
- Supply of services not reverse charged: Foreign non-established businesses supplying services on which Greek VAT is due by the supplier must register for VAT. These services are rather exceptional, as the general B2B rule would apply.
- Imports of goods in Greece: when a non-established trader imports goods under his or her own name, a VAT registration is required in the country.
- Export: Exporting goods to a non-EU country requires a VAT number before the export is made.
- Intra-Community acquisition: Acquiring goods from another Member State where all conditions for intra-Community movements are met requires the customer to register for VAT.
- Intra-Community supply: Supplying goods another Member State is also a taxable transaction that obliges the supplier to register for VAT.
- Distance sales: When applicable in case the Seller has not joined OSS. See the E-commerce manual for more information.
Non-established companies must submit apply for VAT registration before performing any of the above taxable transactions. There is no turnover threshold applicable to non-established companies.
Similarly, there is no exemption threshold for Greek established companies.
Input VAT connected with the business activity and incurred prior to the VAT registration date can be deducted under certain circumstances (see ΠΟΛ.1155/2018).
Backdated registrations are allowed in Greece. You will need to regularize past reporting periods as from the registration date.
Check here, here and here the official information about VAT registration in Greece.
Also, you can download here an official guide with useful information for the granting of VAT registration number and the submission of VAT returns by foreign companies in Greece.
Fiscal representative requirements in Greece
Some countries require all non-EU companies to appoint a fiscal representative when registering for VAT. This is the case in Greece.
Non-EU based businesses registering for VAT in the country must appoint a tax representative who will act on its behalf. The fiscal representative takes on the responsibility for the submission of the correspondent returns and the payment of the VAT due and being jointly and severally liable.
The appointment of the fiscal representative is completed by submitting a copy of the relevant power of attorney to the competent Head of the Tax Office who is in charge of the taxation of the fiscal representative’s income. The copy must be certified by the Greek Consular Service of the country of establishment, or by certified with the Hague Apostille.
Separately, non-established businesses based in a Member State may also appoint a fiscal representative in Greece. Such fiscal representative is not under the obligation to maintain accounting books and issue fiscal documents in respect of the transactions effected by his principal.
Have a look here at the section How can an undertaking established in a third country (outside the EU) register only in Greece for VAT purposes?
This obligation is regulated in Art. 36.4.d) and e) and Art. 35.1.c) of the Greek VAT Law.
VAT groups in Greece
VAT grouping is not possible in Greece.
Consignment and Call-off stock in Greece
The EU introduced a call-off stock simplification that all EU Member States must implement. This was put into place so that businesses that operate under a consignment stock structure do not have to VAT register in the country of destination. Greece has introduced the call-off stock simplification.
Greek Bad Debt Relief
Bad debt refers to an unpaid invoice for which the Supplier has paid the VAT to the tax administration: this is, an invoice has been issued with VAT, reported in the VAT return and the VAT amount has been paid to the tax authorities but the whole price has not been collected from the customer. This is often due to the client´s bankruptcy, insolvency or simple missed payments to suppliers. In these cases, most countries allow to recover the VAT initially paid to the authorities, however, the conditions change from one country to another.
Bad debt relief refers to the possibility of recovering the VAT from that invoice. Greece does not allow for bad debt relief.
Greek Import Deferral and Postponed VAT Accounting
Greece has introduced a postponed import VAT accounting mechanism where import VAT can be reported as input and output VAT (reverse charged) in the VAT return instead of being paid to the authorities upon importation. Postponed import VAT accounting in Greece is available for foreign businesses with a Greek VAT number, subject to certain conditions and appliable in limited scenarios, and upon request.
This regime allows the importer to account for the import VAT in the periodic VAT return. In order to benefit from this regime, the foreign taxable person intending to act as the importer of records in Greece must apply in advance to the Greek Ministry of Finance to obtain a State licence. The conditions to apply the postponement of import VAT to the VAT returns are the following:
- The goods imported are not subject to excise duties.
- The taxpayer does not have a fixed establishment in Greece.
- The value of the goods imported exceeds EUR 100 million for the first five years, and EUR 250 million after the fifth year.
- Most of the imported goods are used to perform subsequent intra-Community supplies or exports – more than 90%-.
In case the importer is not VAT registered in the country, then import VAT will be collected by Customs.
Greek Customs and VAT warehouses
Customs or bonded warehouses are available for goods that have not cleared customs in the EU (T1). VAT and excise duties are not due when these goods are directly placed in the Customs warehouse. As soon as they exit this regime, these amounts are due. Sales within the customs warehouse are zero-rated.
VAT warehouses are available for cleared goods (T2). These goods have already paid customs duties. The conditions are similar to those of Customs warehouses. The goods allowed are those included in Appendix V of the VAT Directive.
Greece has introduced both customs and VAT warehousing regimes.
Read more about Customs warehouses in Greece (POL. 1184/2018). Finally, find here official EU guidelines on Customs’ special regimes.
Special VAT Schemes in Greece
Businesses may benefit from the following special VAT regimes:
- Small businesses: this is a VAT exemption scheme that applies to established companies with a turnover (exclusive of VAT) not exceeding EUR 10,000 in the previous calendar year. The businesses under small business scheme do not need to charge VAT on their supplies or file VAT returns. These businesses are not entitled to input VAT deduction.
- Farmers.
- Travel agents.
- Margin scheme.
- Investment gold.
Have a look at our website articles about TOMS and the Cash accounting scheme.
Reverse Charge in Greece
Reverse charge for non-established companies in Greece
According to art 194 of the VAT Directive, Member States may implement an optional reverse charge on supplies made by non-established businesses.
Greece has not introduced the reverse charge mechanism on domestic supplies of goods or services made by foreign non-established companies.
Reverse charge in B2B services
Article 196 of the VAT Directive requires the reverse charge mechanism on all services subject to the B2B rule introduced in art. 44 of the same Directive. The B2B rule locates the transaction where the business customer is located. In case the customer is a private individual, B2C rules locate the transaction where the supplier is located.
According to the general B2B rule, any business resident outside Greece supplying services to a Greek based customer will not charge any VAT and the transaction will be reverse charged by the customer.
There are however a number of exceptions to this rule. Where these exceptions apply, reverse charge is still applicable in Greece provided the following conditions are met:
- Services connected to immoveable property are located where the property is located.
- Passenger transport services will be located where the transport takes places (apportioned if necessary).
- Catering services are located where the catering takes place.
- Short term leasing of means of transport are located where the vehicle put at the disposal of the customer.
- Access to conferences, fairs and exhibitions is located where the event takes place.
The general rule may also be deviated where the supplier has a permanent establishment in the country of the customer and the PE has intervened in the supply.
Find out more about the rules for B2B services in the EU here.
Reverse charge on specific goods and services in Greece
Domestic reverse charge may also apply to certain domestic supplies goods and services made in Greece to another taxable person, as regulated in Art. 39.5 Greek VAT Law:
- Domestic supplies of scrap material (metals (ferrous or not), glass, paper or cartons) when the customer is a reselling company. In such case, the invoice shall contain the following mention: “article 39a, the purchaser of the goods is liable to remittance of the VAT”.
- Supplies of greenhouse gas emission certificates, when the customer is a taxable person established in Greece.
- Supply of construction work when supplies to public authorities.
- Supplies of mobile telephones, game consoles, tablet PCs, and laptops (Article 39a, par. 5 Greek VAT Law): the reverse charge applies.
Find here and here more information about the reverse charge under Article 39a, par. 5 Greek VAT Law in Greece, and the online service available for sellers to verify that their customers buying goods are taxable persons and have the right to deduct input VAT. This online service is also useful for the seller to verify the right of representatives of buyers to proceed with a purchase. The use of this service is not mandatory.
VAT returns in Greece
Frequency of VAT returns in Greece
The frequency of filing for non-established taxpayers in Greece is quarterly. However, taxpayers that must keep double-entry books shall submit monthly VAT returns.
Find here the official information about reporting periods and deadlines in Greece.
Due date of Greek VAT returns
The VAT return deadline applicable both for quarterly and monthly VAT returns in Greece is the last working day of the month.
Find here official information about the Greek deadlines.
VAT payments in Greece
VAT payments in Greece can be made via bank transfer to the tax authority bank account:
- Account: GR3901 0002 3000 0000 4810 9050 9
- BIC: BNGRGRAΑ
- Payment reference: The payment reference is issued after the submission of the VAT return and is individual for each taxpayer and reporting period.
The beneficiary is the Ministry of Finance.
Find here more information at the official information about VAT payments in Greece. Also, you can find here and here the information for payment via bank transfer.
VAT Refunds in Greece
The excess of input VAT can be either carried forward to the next reporting period or refunded upon request in the VAT return form. This is, when a taxable person declares more VAT deductible – e.g., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be reimbursed to the taxpayer.
If you want to request the VAT refund you need to indicate it in the VAT return:
- You must tick the box 503 to apply for a VAT refund.
- You must complete one of the refund reasons other than reduction of debit balance.
- In case your bank account is not located in Greece or not within the SEPA jurisdiction, you must tick a specific box to indicate this.
Where the TAXISnet network cannot create a refund request due to technical reasons, taxpayers will receive a message notifying them to file their request in paper sent in hard copy to the tax office, using the template I appended to decision Α.1104/6.5.2020.
The refund will be paid to the taxpayer within 90 days of the date the taxpayer filed the refund application, which is created online when filing the VAT return.
Check here, here and here more details about VAT refunds. Also, here you find more information for taxpayers under pro-rata rule.
Nil and corrective VAT returns in Greece
A nil VAT return needs to be submitted even if there are no transactions to be reported for that period.
Errors or omissions in a VAT return must be corrected. You will need to submit a corrective return by selecting Amending Periodical VAT return in the electronic portal TAXISnet. The corrective VAT return replaces the previous return submitted for the same period in full. This means that the corrective return must include all details that were already correct in the original return as well as the corrected details.
In case that this option is not available for any reason (e.g., the last return before de-registration), you can use the Inquiries option through your Account to send your particular request.
Any VAT due arising upon submission of the periodic VAT return is payable to the Greek State when higher than EUR 30. However, when lower than EUR 30, the balance may be carried forward to the following tax period and be paid by then.
When submitting a corrective VAT return, penalties and interest may apply.
Find here and here (file Frequently asked questions – answers) the official information about making corrections to VAT returns.
VAT penalties in Greece
Find below an overview of the applicable penalties for late VAT registration, late submission of a VAT return and late payment of VAT:
Greek Tax Authorities Contact
📝 General contact forms.
GENERAL DIRECTORATE OF TAX ADMINISTRATION
DIRECTORATE FOR IMPLEMENTATION OF INDIRECT TAXATION. DEPARTMENT A' VAT
Tel. Address: Sina 2-4
Tah. Code: 10672
- Telephone: 2132122400
- E-Mail: deef.a@aade.gr
- Url: www.aad.Gr
OSS schemes
For information concerning your registration or concerning the progress of your OSS/IOSS VAT return, you may submit your query to:
C2 'SECTION OF SPECIAL VAT REGIMES IN THE CONTEXT OF E-COMMERCE
Tel: +30 213 1607124, 125, 126
Email: ek.fpa.katex@aade.gr
For general queries concerning the legal framework of the OSS (EU, non EU) schemes, you may submit your query to:
Department D’ - VAT in E-commerce and Issues of Indirect Taxation in the EU and International Bodies
Tel.: +30 213 2122412, 414, 415, 417, 418, 422
Email: deef.d@aade.gr
For general queries concerning the legal framework of the IOSS scheme, you may submit your query to:
Department E’ - VAT Import - Export
Tel.: +30 210 6987409, 210 6987417
Email: vat-customs@aade.gr
Intrastat returns
Hellenic Statistical Authority (ELSTAT)
46 Pireos & St. Eponiton St. 185 10, Piraeus
Call Center: 213 135 2000
Email: kosmastr@statistics.gr
Customs
Department E’ - VAT Import - Export
Tel.: +30 210 6987409, 210 6987417
Email: vat-customs@aade.gr
ESL/ESPL returns in Greece
Due date and frequency of ESPL returns in Greece
The deadline for submitting recapitulative statements for intra-Community transactions in good time (forms Φ4 & Φ5) is the 26th day of the month after the end of the reporting period.
If the 26th day coincides with an official holiday, Saturday or Sunday, the deadline is extended to the next working day.
ESL returns shall be submitted electronically on TAXISnet, on a monthly basis.
Find here the official information about ESL returns (or recapitulative statements) in Greece.
Nil and corrective ESPL returns in Greece
If there are no intra-Community transactions to be reported in a given period, a nil an ESPL is not due in Greece.
Errors or omissions in an ESPL return must be corrected. You can submit a corrective return in the electronic portal TAXISnet.
Penalties for late ESPL returns in Greece
Failing to comply with ESPL regulations is punished with a penalty of EUR 100 for each return not filed.
Intrastat returns in Greece
Frequency of filing and due date of Intrastat returns in Greece
The frequency of filing for non-established taxpayers in Greece is quarterly. However, taxpayers that must keep double-entry books shall submit monthly VAT returns.
Find here the official information about reporting periods and deadlines in Greece.
Also, the VAT return deadline applicable both for quarterly and monthly VAT returns in Greece is the last working day of the month.
Find here official information about the Greek deadlines.
Greek Intrastat thresholds
The following annual Intrastat thresholds apply in Greece in 2023 (calendar year):
- Arrivals: EUR 150,000
- Dispatches: EUR 90,000
These thresholds are computed annually according to the calendar year. Once filed, a complete calendar year needs to be covered by a company in order to stop filing these returns. For example, if a company exceeds the threshold in March 2023 on arrivals, Intrastat returns for arrivals are due until December 2024. These thresholds are calculated according to the invoice value. The authorities monitor the thresholds and often send letters to each taxpayer requiring them to file missing Intrastat return.
Have a look at our overview of Intrastat thresholds.
Also, you can find here the official information about Intrastat thresholds in Greece.
Reporting of specific scenarios in Greece
Very often, the transactions reported in the Intrastat return are standard sales from one taxable person to another. However, a number of scenarios have specific reporting requirements.
The list of transaction codes for Intrastat in Greece can be found here under the Code of transactions table.
Nil and corrective Intrastat returns in Greece
If no transactions are to be reported, a nil Intrastat is not due.
In case the information included in a given Intrastat return declaration needs to be corrected, you must submit an amending declaration. You also submit an amendment in cases where goods have been received from the declaration. This is how you should proceed:
- In the online portal you need to select from the column "Amending statement" the month and the Flow you want to modify.
- When the system brings you the registrations of the month, click on the 8-digit code of the commodity, which corresponds to the record you want to modify, correct the incorrect data and then select "Accept" and "Send declaration".
Find here the instructions on how to submit a corrective Intrastat return.
Intrastat Penalties in Greece
Taxpayers may incur in a penalty of EUR 100 for late or missing submission of the Intrastat return.
