Special topics

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Special VAT exemption regime for small businesses

The Greek VAT legislation provides for a special VAT exemption regime for small businesses, which is regulated in article 39 of L. 2859/2000-Greek VAT Code, which has been amended since 1/1/2019 in order to improve and simplify the regime as well as fully harmonize it with the EU VAT law. Moreover, Circular E. 2012/2019 was issued communicating the new provisions and giving various clarifications on the regime in the context of the amended article 39. Herein below we provide the main points of the special VAT exemption regime for small businesses: The regime is optional; the new (amended) provisions aim at...

11 Feb 2022

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VAT treatment of educational services

For the assessment of the VAT treatment of educational services (such as teaching and training services), the first step is to determine the place of supply of those services for VAT purposes, based on their nature/classification, the VAT status/capacity of the recipient of the services as well as the way the services are provided (e.g. online). Following the determination of the place of supply, and should this be Greece, the next step would be to examine whether the services could benefit from the VAT exemption applicable to educational services. Should this be the case, even if the place of supply...

02 Feb 2022

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Procedure and documentation required for the commencement of a sole-trader business/freelancer activity

in Labor & Employment, Special topics

The procedure for the commencement of a sole-trader business or a freelancer activity entails the following steps, at the different competent authorities, accompanied by the required documentation: Pre-registration with the Single Social Security Entity (the Social Security Institution called “EFKA”); Pre-registration with the competent Chamber Registration with the competent Tax Office Completion of the Registration with the Social Security Institution Completion of the Registration with the Chamber An outline is given below of the documents required for each step: Pre-Registration with the Social Security Institution (“EFKA”) The pre-registration is made with the competent Social Security Office for Νon-Εmployees (i.e. sole-trader businesses/freelancers) located...

28 Jan 2022

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Private Company (I.K.E.) – main characteristics

in Company Law, Special topics

The Private Company (P.C or I.K.E.) also know as Private Capital Company, is a relatively new form of commercial company introduced in the Greek legal framework by virtue of Law 4072/2012. We have collected its main characteristics in the following bullet point list: Separate legal personality: The Private Company enjoys a separate legal and commercial entity from its members (as they are not considered merchants per se), and can act separately from its members (e.g. can own property and incur debts) Establishment: The minimum requirement for the establishment of a Private Company is a private agreement providing the Articles of Association...

25 Jan 2022

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Conditions and procedure for the issuance of “digital nomads visa”

in Immigration Law, Special topics

[manual for implementation of immigration and social integration codes and related legislation - special cases of schengen visa– case B16 – “Digital nomads visa” - November 2021] According to what is provided in case ie’ of paragraph 1 of article 18 of Law 4251/2014, as amended and currently in force a national visa may be granted to third country nationals, who are self-employed, freelancers or employees, and work remotely using Information and Communication Technologies (ICT) whose employers or clients are located outside Greece (digital nomads). The visa is be granted following the appearance in person and an interview. This national visa...

24 Nov 2021

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Professional leisure yachts – VAT exemption for purchase/import

The Greek VAT legislation provides for a VAT exemption for the purchase/import of professional leisure yachts in Greece, provided of course that the specific conditions set out by the relevant VAT legislation (as well as by the applicable regulatory framework) are met. VAT legislation In specific, according to article 27 par. 1 case (a) subcase (aa) of the Greek VAT Code (L. 2859/2000), a VAT exemption is provided for the supply (purchase) and import of vessels that are intended to be used for navigation on the high seas and which carry passengers for reward or which are used for the purpose of...

24 Nov 2021

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Private use (self-use) of a professional leisure yacht by the UBO

- The professional leisure yacht needs to be registered with the Registry of yachts of L. 4256/2014. - The professional leisure yacht is used for commercial charters and may also be used privately by the UBO for his private needs. - This private use is allowed by the regulatory framework of L. 4256/2014 and does not change the character of the yacht as a professional leisure yacht. - For the time that the yacht is used privately by the UBO, the VAT and any excise duties on the costs of the yacht are not deductible (e.g. on fuels, repairs, other provisioning etc.) - The...

23 Nov 2021

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Procedure and supporting documentation for application to the Greek Non-Dom taxation regime (Article 5A of the Greek Income Tax Code)

Article 5A of Law 4172/2013, which applies from the 2020 tax year onwards, states that an individual who transfers their tax residence to Greece using this procedure can be subject to an alternative method of taxation for income generated abroad. An individual may join this scheme under the following conditions: if they were not tax resident in Greece in 7 of the 8 years prior to the transfer of their tax residence to Greece and they prove that they invest personally or a relative does so (meaning their spouse and relatives in the ascending or descending line) or they do so...

16 Nov 2021

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Sick Leave – basic provisions of Greek employment law