Brief overview of the Greek VAT regime
Main types of supplies subject to VAT in Greece
The main types of supplies subject to VAT in Greece are, among others:
a) the supply of goods and services carried out within Greece for consideration by a taxable person acting as such in the course of his business;
b) the intra-Community acquisitions of goods in Greece for consideration by a taxable person acting in his capacity as such (or by a non-taxable legal entity on the condition that the supplier is subject to VAT in another EU Member State and the non-taxable acquirer has exceeded the IC threshold of Euro 10,000 annually). Especially, regarding the intra-Community acquisitions of new means of transport the capacity of the acquirer is indifferent;
c) the Intra-Community acquisition of goods subject to excise duty (e.g. manufactured tobacco);
d) the importation of goods.
Currently applicable VAT rates
The standard VAT rate is 24%, applicable to all goods and services that are not subject to the reduced or super-reduced VAT rate, which are explicitly enumerated in the law.
There is also a reduced VAT rate of 13% and a super-reduced VAT rate of 6%, applicable on the supply of specific goods and services.
Moreover, the above VAT rates are reduced by 30% (i.e. 17%, 9% and 4% respectively) in the Aegean islands of Chios, Kos, Lesvos, Leros and Samos under certain conditions.
Place of supply of goods
By virtue of article 13, par. 1 (a) of the Greek VAT Code, the place of supply of goods is where the goods are located at the time of the supply (i.e. at the time the VAT becomes chargeable).
VAT on import of goods and specific exemptions/deferment schemes (import)
Non-Community goods that enter the Community in Greece and are put into free circulation in Greece are subject to import VAT in Greece. The same applies for goods that are released from a customs duty suspension regime in Greece (including customs warehouses, temporary importation and inward processing relief). There are specific exemptions and/or deferment regimes, depending on the case.
VAT on export of goods outside Greece
Exports of goods outside the EU is exempt from VAT with the right to deduct input VAT (zero rated).
VAT on intra-community supplies of goods/services
Supplies of goods and services to persons subject to VAT and established in EU countries (intra-Community supplies) are exempt from VAT with the right to deduct input VAT (zero rated).
VAT on intra-community acquisition of goods
The intra-community acquisition of goods is subject to VAT, but a reverse charge mechanism applies.
More specially, a taxable person accounts for VAT on an intra-Community acquisition by reporting the acquisition VAT on his monthly VAT return. Provided the taxable person is entitled to full deduction of VAT (i.e. performs only activities that are subject to VAT or exempt with the right to deduct input VAT), he deducts the acquisition VAT as input tax on the same return.
VAT on supply of services
Anything which is not a supply of goods but is done for a consideration (including the grant, assignment or surrender of any right) is a supply of services.
A supply of services is considered to be made when the service has been completed or, if earlier, when an invoice is issued.
In general, by virtue of article 14, par. 2 of the Greek VAT Code, B2B services (i.e. services provided between taxable persons) are deemed to be supplied (and are therefore taxable for VAT) in the country where the customer has established his business. However, if those services are provided to a fixed establishment of the taxable person in a place other than the place where he has established his business, the place of supply is where that fixed establishment is located (general B2B rule).
In the absence of such place of establishment or fixed establishment, the place of supply is where the taxable person who receives such services has his permanent address or usually resides.
However, article 14 of the Greek VAT Code, stipulates that there are certain kinds of services, for which the said general B2B rule does not apply, but rather specific rules apply regarding their place of taxation (such as services related with immovable property, passenger transport services, lease of means of transport, certain services when supplied to non-taxable persons etc.).
Deduction of input VAT
Article 30 par. 1 of the Greek VAT Code provides for the general VAT deductibility rule.
In particular, a taxable person is entitled to deduct from the output VAT incurred on the supply of goods and services effected by him, the input VAT incurred on the purchases of goods and services made by him.
The right of deduction is granted to the extent that the respective goods and services purchased by him are used for the realization/conduction of activities that are subject to VAT or are exempt from VAT with the right to deduct the input VAT.
For the deduction of input VAT, the existence of a legal invoice or any other document issued instead of an invoice is required, from which a description of the goods or services acquired and the relevant VAT charged should derive.
Submission of VAT returns
Legal entities which maintain double-entry accounting books, must file a periodical/monthly return. The deadline for filing the monthly VAT return is the last working day of the following month from the end of the relevant tax period for VAT returns.
Legal entities maintaining single-entry books file VAT returns on a quarterly basis. The deadline for filing the quarterly VAT return is the last working day of the following month from the end of the relevant quarter.
VAT returns are filed electronically in the electronic database of the Ministry of Finance (“TaxisNet”).
Any adjustment of VAT deductions effected during an accounting period should be included in the VAT return to be submitted by the last working day of the 4th month following the lapse of the accounting period.
As regards the time limit for paying the VAT due, the tax difference resulting from the above tax returns filed, if positive and more than 30 Euros must be paid to the Greek State. If less than 30 Euros is transferred for payment to the following tax period and if negative is transferred for deduction or refund. The obligation for payment ends the last working day of the month that the return was timely filed.
Especially for timely filed VAT return of more than 100 Euros to be paid, the taxpayer may choose to pay the tax due in two equal instalments. In such case the second instalment is paid until the last working day of the month following the filing of the timely return.
Credit VAT balance may be carried forward for five (5) years from the end of the tax year within which the final VAT return of the year in scope should have been timely filed. The taxable person may apply for a VAT refund or transfer the VAT amount to the subsequent fiscal period, subject to the above statute of limitation period.
Other VAT reporting obligations
Taxable persons established in Greece that supply and/or receive cross-border (intra-EU) goods and/or services are liable to:
- Declare the commencement, change or cessation of operations related to the supply and/or acquisition of cross-border goods and/or services (in this way, they are also identified in the VIES registry).
- Use the prefix EL in their dealings with foreign taxable persons.
- Report all supplies and purchases to/from taxable persons in the EU in the EC Sales/Acquisitions Listing statements.
- All intra-Community transactions must be included in EC Listing tables. Two types of forms are provided in this respect: a) Recapitulative Statement of intra-Community supply of goods and provision of services (i.e. EC Sales Listing) and b) Recapitulative Statement of intra-Community acquisition of goods and receipt of services (i.e. EC Acquisitions Listing). Listing Statements are filed electronically and on a monthly basis. No Listing Statements have to be filed for a given month, in which no intra-Community transactions took place.
- Especially regarding movements of goods between Member States which take place for commercial reasons, Intrastat returns should also be filed, declaring either the dispatch or the arrival of goods in Greece, respectively, provided that certain annual quantitative thresholds are exceeded. Intrastat returns must be filed electronically on a monthly basis.
VAT refund
The VAT refund request is filed electronically, through the relevant periodic VAT return, by indicating a relevant field (box) in the VAT return.
There are no limitations regarding either the frequency of the requests or the amounts requested for refund.
The eligible period for submission of a refund request is 5 years from the end of the year in which the last VAT return of the year in scope, should have been filed. For example, regarding input VAT that arose within 2023, the company would be eligible to exercise its right for recovery until 31.12.2029.
In practice, by virtue of article 42 par. 1 of the Code of Tax Procedures (L. 4174/2013), in case the taxpayer is entitled to the refund, the tax authorities first offset the refundable amount against any other current tax liabilities of the taxpayer and then refund any residual tax amount.
The VAT refund may be performed either directly or following an audit by the tax authorities (temporary or regular audit). However, the criteria under which the authorities decide to conduct an audit or not are internal criteria of risk analysis which are not published. In practice, it is quite common for the conduction of a VAT audit when a VAT refund claim concerns large amounts or when it is the first time that a taxable person requests for a VAT refund.
For refunds of more than EUR 300,000, the refund is subject to the prior approval of the Ministry of Finance.
In addition, pursuant to article 42, par. 2 of the Code of Tax Procedures, in case of approval of the VAT refund request, the relevant amount has to be remitted to the taxpayer within ninety (90) days from the date of the submission of the request before the competent tax office. After the lapse of this period, the taxpayer is entitled to receive also interest due to late payment.
The expiry of a certain period from the submission of the said Refund Claim without any official reply from the tax authorities would signify an implied/tacit rejection of the claim by the Tax Authorities against which the company has the right to take legal action (e.g. by filing an administrative recourse).
* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.