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Upcoming tax developments in Greece

Iason Skouzos & Partners > Practice Areas  > Tax Law  > Upcoming tax developments in Greece

Upcoming tax developments in Greece

  1. VAT
  • Suspension of the imposition of VAT on construction activity for the following three (3) years.
  • Reduction of VAT rates from 13% to 11% and from 24% to 22% within the following four (4) years, especially for baby essentials.
  • Gradual imposing of e-business invoicing (B2B) and e- accounting books.

 

  1. Real estate tax
  • Reduction of the Unified Real Estate Property Tax (hereafter EN.F.I.A.) rates within the next two (2) years.
  • Suspension of the imposition of goodwill tax on the transfer of property for the next three (3) years.
  • Tax deductions for the expenses related to energy functional and upgrading of real estate.
  • Emergency tax exemption for the legal entities for development purposes.

 

  1. Income tax
  • Reduction of the income tax from 28% to 24% for the tax year 2019.
  • Reduction of dividend tax from 10% to 5%.
  • 5% reduction of the advance income tax.

 

  1. Proposed provisions about e- books

The new bill provides the framework for the operation of a new digital platform (“myDATA”), which will enable companies to maintain electronic books (e- books) and record invoice. The myDATA platform will include two e-books categories:

  • an analytical entries book (analytical book), where companies will record a summary of all supporting tax documents for revenues and expenses;
  • a summary reporting book (summary book), where companies will report aggregate monthly and annual accounting results, tax results and any related tax liability.

The e-books will be used as follows:

  • transmitting and recording a company’s summary revenue and expenses documents (ie the value of the transaction, taxes, stamp duty etc);
  • characterizing recorded transactions;
  • recording all necessary accounting entries, which is necessary for the determination of accounting and tax results of tax year.

The above data will be transmitted to the Greek Independent Authority of public revenue via (i) a company’s accounting software, (ii) a special electronic platform, (iii) tax machines for retail transactions and (iv) e- invoices.