LOCAL VAT MEASURES FOR FOREIGN COMPANIES IN GREECE
Greece had no simplification measures applicable for call-off stock arrangements up to 31/12/2019. Foreign companies were therefore required to register for VAT purpose locally.
Since 01/01/2020, the European simplification regime for call-off stock arrangements ("2020 Quick Fixes") entered into force and is to be applied by all Member States, including Greece.
Triangulation can be applied when the middleman (B) is VAT registered for others supplies in the 3rd country (Member State of destination)?
No
Triangulation can be applied when the chain transaction involves four or even more parties?
Information available on request only
Chain transactions refer to successive supplies of goods which are subject to a single intra-Community transport. The intra-Community movement of the goods should only be ascribed to one of the supplies, and only that supply should benefit from the VAT exemption provided for the intra-Community supplies. The other supplies in the chain should be taxed and may require the VAT identification of the supplier in the Member State of supply.
However, the divergent approach amongst Member States in the application of these exemptions for cross-border transactions has created difficulties and legal uncertainty for businesses.
Optional reverse charge for supply of goods?
Reverse charge mechanism is not applicable, except for specific goods, e.g. scrap, recyclable goods, mobile phones, game consoles, tablets and laptops.
Optional reverse charge for supply of services
Reverse charge mechanism is not applicable, except for specific services such as construction works rendered to public bodies.
VAT Warehousing implemented in Greece?
Yes
Greece has introduced VAT warehousing regime applicable under specific conditions.
VAT Directive
Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.
Is it possible for a company to pay the import VAT via the periodical VAT return?
Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.
To benefit from postponed import VAT accounting, companies must meet certain criteria. The most important one is the realization of imports with a statistical value of at least €300 million on an annual basis. A reduced threshold of €120 million applies for the first five years of application of the scheme. A new law provides for a reduction of the aforementioned annual thresholds to respectively €250 million and €100 million for the first five years.
VAT DIrective
Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return to be submitted.
VAT OBLIGATIONS IN GREECE
How is the tax period determined in Greece?
Quarterly
Your company has to report its VAT position by filing periodical VAT returns on a quarterly basis [standard tax period]. No other tax periods exist in Greece for foreign taxpayers.
When should periodical VAT return be filed?
As from 01/04/2014: Periodical VAT returns must be filed before the last day of the month following the tax period [month/quarter] to which it relates
VAT Directive
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Is this requirement laid down in the country and what is the filing deadline?
Abolished on 01/01/2014
VAT Directive
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL] must be drawn up for each calendar month. ESL should be filed by electronic means by the 26th day of the month after the end of the reporting period [month]. Filing the statement on a quarterly basis is not possible.
VAT Directive
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The VAT due should be paid by filing deadline for the VAT return - no later than the last day of the month after the end of the tax period [month/quarter] to which it relates.
Are interim payments required?
Interim payments are not required in Greece.
VAT Directive
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
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.
VAT Directive
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.
VAT OVERVIEW IN GREECE
What is the local name of the tax?
Foros Prostithemenis Axias [FPA]
What is the structure of the VAT number?
Greek VAT numbers have 11 characters [EL + 9 digits].
VAT Directive
Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services. Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.
VAT rates
Greece applies a standard VAT rate of 24% and two reduced VAT rates: 6% and 13%.
Update 05/2019 :
Greece has amended its VAT Law and extended the application of the reduced VAT rate (13%) to additional goods, including oils, cocoa, sugar, salt, vinegar and miscellaneous edible preparations. The reduced rate now also applies to catering services in restaurants (alcoholic and non-alcoholic beverages excluded).
Update 05/2020:
VAT rate is reduced down to 13% in the tourism sector between 01/06 and 30/04/2021. This notably applies to cinema, restaurants, coffee shops, trains, airplanes, boats, busses and non- alcoholic beverages
€ 35,000
see various thresholds applied in the EU
Ministry of Finances
Intrastat
Any VAT question for Greece?
We offer you the opportunity to discuss the subject during a free videoconference.