It is mandatory for your company to apply for VAT registration with Greek authorities before starting your activities. Financial penalties may apply if the application for registration is submitted late.

If your company wishes to register for VAT in Greece, it is essential to contact the Greek tax authorities. There is no need to contact the tax authorities in your country of establishment.

In particular, your company will need to submit the following documents:

• The VAT registration form(s) completed in the language of the country
• A copy of the articles of association
• An extract from the trade register
• A certificate of VAT liability
• Power of attorney (if using a fiscal agent)
• Proof of activity on the territory of the country concerned: a contract, an order form, etc.

The Greek tax authorities may require some of these documents to be translated into Greek.

If your file is complete, it generally takes one month to obtain the VAT number from the competent Greek tax office.

Greek VAT authorities may require non-European companies to appoint a fiscal representative. This is a local company that will represent you to the local VAT authorities. He is responsible for the respect of all your VAT obligations, including those of which he was not aware. For this reason, he may require a deposit (e.g. a bank guarantee) from you before accepting the representation assignment.

European companies are not obliged to appoint a tax representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.

Your company must keep ledgers sufficiently detailed to enable the application of VAT and its control by the Greek tax authorities.

If your company exceeds certain thresholds, it will be obliged to file an Intrastat statement.

The thresholds in Greece are:

• Arrivals: EUR 150,000
• Shipments: EUR 90,000

As a supplier of goods or services, your company is normally obliged to issue an invoice with VAT to its customer. This is the general rule. However, there are many derogatory situations which transfer this obligation to pay tax to the customer himself. These situations are known as "reverse charge" situations.

The special reverse charge rules have been introduced in Greece for foreign companies:

For supplies of goods:

Reverse charge mechanism is not applicable, except for specific goods, e.g. scrap, recyclable goods, mobile phones, game consoles, tablets and laptops.

For supplies of services:

Reverse charge mechanism is not applicable, except for specific services such as construction works rendered to public bodies.

The VAT Directive lays down the minimum information that you must include on your invoice. In some cases, countries may add additional compulsory information. Particular attention should be paid to the conversion rates when the currency used on the invoice is not that of the country in which the transaction takes place, and to the specific statements justifying the legal reason why VAT is not charged.

Greece has 3 different VAT rates :

• Standard rate : 24%
• Intermediary rate : 13%
• Reduced rate: 6%

It is possible to send invoices in paper format.

There are several methods to obtain refunds of Greek VAT. The practical formalities for reclaiming foreign VAT will differ depending on whether or not your company is established in Europe and/or is identified for VAT in Greece :

• If your company has a VAT number in Greece, it will have to submit a refund application in the form and within the timeframe required by local regulations. A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. VAT credit can be refunded yearly, quarterly or monthly under conditions. In three years in all other cases.

• If your company is established in a European country and does not have a VAT number in Greece, it will have to apply for a VAT refund electronically from its country of residence, in the form and within the time limits required by Directive 2008/9.

• If your company is established outside Europe and does not have a VAT number in Greece, it may have to appoint a tax representative to submit its refund application in the form and within the time limits required by the 13th Directive.

VAT incurred on purchases, imports or intra-Community acquisitions of goods and services can be reclaimed by a foreign company provided that these expenses are for taxable activities and provided that the appropriate documentation is available.

No input VAT can be recovered on any of the following expenses:

• Entertainment and reception costs
• Hotel accommodation and catering services (subject to conditions)
• Tours, visits and guides costs
• Passenger cars up to 9 seats.