VAT Rates in Greece

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.

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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.

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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.

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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.

Use and enjoyment rules in Greece

When it comes to establishing the place of supply of a transaction, Member states may deviate from the general rules for B2B and B2C services according to the place where the services have been used and enjoyed. This exception may be introduced to avoid double taxation (positive use and enjoyment rules), to avoid non-taxation (negative use and enjoyment rules), or both.

Greece has introduced the use an enjoyment clause according to which Greece is regarded as the place of supply where the following certain services are used and enjoyed in the country:

• Short term lease of means of transport.
• Telecommunication services, electronically supplied, radio and television broadcasting services B2C.
• Lease of movable goods B2C.

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.

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