EU VAT guide – Greece

VAT rates in Greece 

How much is VAT in Greece? 

The Standard VAT Rate (συντελεστή ΦΠΑ)) in Greece is 24%. 

Some supplies are exempt from VAT. This applies to business activities like health care, insurance, and postal services.

The exact list of taxable transactions and allocated Greece VAT rate can be found in VAT Greece regulations. 

VAT thresholds in Greece 

Valuable information about the VAT threshold in Greece and applicable provisions can be found in the VAT legislation. Also, a helpful source of information is an interpretation of the appropriate information shared by Tax Authority officials. 

VAT registration threshold for resident businesses: No registration threshold.

VAT registration threshold for non-resident businesses: No registration threshold.

VAT registration threshold for intra-EU distance sales of goods and B2C supplies of services: EU-wide harmonized threshold of EUR 10,000.

VAT registration threshold for non-EU established suppliers of Electronically Supplied Services: No registration threshold.

VAT Taxable Activities in Greece

A taxable person by Greece VAT Law is a legal person or individual who carries out economic activity independently, whatever the purpose or results. 

Types of taxable activities that trigger the imposition of Greece VAT: 

• The supply of goods and rendering of services in Greece for consideration;
• Receipt of reverse-charge services by a taxable person in Greece;
• Export of goods;
• Import of goods.

Other case scenarios exist where domestic or foreign businesses should impose Greece VAT on their transactions. 

Tax Representative in Greece 

For non-EU-established businesses, having a tax representative for all VAT compliance-related activities is often mandatory. Tax persons with tax residence in third countries or territories with mutual assistance agreements signed with Greece can fulfill their tax obligations without the mandatory requirement to contract a tax representative. 

For EU-established companies, having a tax intermediary isn’t compulsory. Still, the economic operator could acquire the professional to ease up and streamline compliance challenges for its operations in the country. 

VAT on Electronically Supplied Services in Greece 

Electronically Supplied Services 

Under the framework of the EU VAT Directive 2006/112/EC, Electronically Supplied Services are defined as services delivered via the Internet or comparable digital networks. One of the key elements of this type of service is that their delivery is based on a high level of automation, so their realization could be processed with minimal or no human intervention at all. 

Services that are delivered without the usage of the technology and automation to some extent cannot be considered as Electronically Supplied Services. 

In line with the EU VAT Directive and its Implementing Regulation, Greece has adopted the standardized definition of ESS through its national legislation. This alignment should guarantee consistency in the 

treatment of this category of services across the EU. 

The standardization aims to reduce complexities when it comes to defining the type of service, the place of supply rules, and what tax rate(rates) the Member State can choose to impose upon it. 

Despite this standardization, the terms “digital services,” “digital products,” and “electronic services” are often used interchangeably, leading to potential confusion and inconsistency in their taxation and legal interpretation. 

Taxability Rules for ESS

The adoption of the E-commerce regulatory package in 2021 introduced important changes to taxability rules within the EU. This package of revised rules brought well-needed consistency and clarity about the taxability rules in the common market and also paved the way for reform of the administrative mechanism developed for registration and submission of declarations at the EU level. 

Significant changes introduced via E-commerce reform from 2021: 

• B2B Electronically Supplied Services: The place of supply for these transactions is determined under general rules, guaranteeing a uniform approach across the Member States. 
• B2C Electronically Supplied Services: Taxable persons that are not established in the EU are required to follow the taxability rules according to EU-standardized regulations, which dictate that the VAT is determined based on the residence of the customer.
• Distance Sales of Goods and ESS: For EU-based suppliers, reaching an annual turnover threshold of EUR 10,000 is very important. Taxable persons who make turnover below this annual threshold may opt to follow their home country’s VAT rules or report transactions through the One-Stop Shop (OSS) schemes.
• Distance Sales Exceeding the EUR 10,000 Threshold: Merchants established in the EU whose annual turnover exceeds this threshold should apply VAT rates based on the destination principle. 

The comprehensive alignment of VAT regulations. under the umbrella of common rules defined through the EU VAT Directive simplifies compliance procedures for businesses operating within the EU. This policy also supports economic harmony across Member States, fostering a competitive and consistent environment for businesses of all sizes.

How much is VAT in Greece for Electronically Supplied Services?

VAT rate Greece: A standard VAT rate of 24% is applied in most cases on sales of Electronically Supplied Services in Greece

E-Commerce VAT Rules in Greece 

On July 1, 2021, EU regulators adopted significant modifications for the part of the EU VAT Directive devoted to the e-commerce framework. These reforms aimed to reduce the complexities associated with VAT compliance for businesses engaging in cross-border transactions.

This legislative package directly shows the EU’s dedication to simplifying VAT processes, lessening operational challenges for businesses, and promoting greater transparency and balance for the stakeholders that operate within the digital single market.

Relevant Features of the 2021 E-Commerce VAT Reforms:

• Cross-Border Sales of Low-Value Goods: The introduction of the EU-wide threshold for imports of low-value goods from third countries or third territories and the related possibility to report tax liabilities under the simplified scheme. 
• Intra-Community Distance Sales: The reforms have eliminated the previously established threshold for intra-community distance sales of goods. These thresholds have been defined per national rules, further complicating the transfer of goods’ supply. 
• Domestic Sales by Deemed Suppliers: In certain cases, digital platform operators will be the responsible taxable persons for VAT. 
• Provision of B2C Services: The scope of provision of services that could be reported under the OSS schemes has been drastically broadened. This expansion simplifies VAT reporting for businesses providing digital services across the EU, fostering a more streamlined approach to VAT compliance and reducing administrative burdens.

E-Commerce VAT Readjustment:

Beyond the primary modifications introduced by the 2021 E-commerce package, this legislative refinement includes a broad update of the uniform reporting system. This critical evaluation led to the proposal of a new EU-wide reporting mechanism, the Import One-Stop Shop (IOSS), designed to further streamline VAT reporting and compliance across member states.

The E-Commerce VAT package made the following special schemes available:

• Union One-Stop-Shop Scheme;

• Non-Union One-Stop-Scheme;

• Import One-Stop-Shop Scheme.

Overview of EU VAT Special Schemes

Non-Union Scheme can be leveraged by

The Non-Union OSS scheme can be used only by non-EU established suppliers. This simplified reporting tool enables sellers outside the EU to declare a wide range of business-to-consumer (B2C) cross-border service transactions. 

This approach facilitates ease of VAT reporting for non-EU vendors engaging in the European market.

Union Scheme can be leveraged by

• EU-based businesses: Taxable entities that are residents in one of the Member States can take advantage of this scheme if they provide B2C services or engage in intra-community distance sales of goods. An important condition that cannot be overlooked is that domestic supplies, i.e., where the customer is a resident of the same MS, cannot be reported under this scheme. 
• Non-EU Based Businesses on Intra-Community Sales: Businesses not based in the EU are also eligible to use the Union Scheme specifically for intra-community distance sales of goods.
• Digital Marketplaces: Whether based in the EU or not, digital marketplaces facilitating intra-community distance sales of goods and for certain domestic supplies can leverage the Union Scheme. 

Import Scheme can be leveraged by

The IOSS scheme can be used by a large number of taxable persons. Taxable persons whose place of business is within the EU or outside the Union. The scope of taxpayers who can benefit from this scheme also covers digital marketplaces in some situations. 

OSS Return and Payment 

Greece’s VAT system doesn’t offer a specially designed simplified registration procedure for providers of non-resident digital service providers.  Nonetheless, non-resident businesses have the option to utilize the One-Stop Shop (OSS) schemes. By leveraging these schemes, they can avoid the burden of being registered according to domestic rules. 

The implementation of the EU-wide OSS schemes has significantly decreased the VAT compliance burden for international businesses providing their services to Greek customers. Before the 2021 amendments to EU VAT regulations, foreign entities engaged in selling goods or services to Greek consumers typically required local VAT registration. 

If the taxable person cannot report their transactions under the OSS scheme when the place of supply is within Greece’s boundaries, they should get acquainted with the domestic regulations and start acting upon them. 

Electronic Platform and Deemed Supplier Rules 

Greece has adopted the revised E-commerce VAT rules from the EU VAT Directive introduced by the 2021 E-commerce reform. Implementation of standardized EU VAT rules has notably decreased compliance and administrative expenses for foreign businesses operating with customers based in Greece.

Following the introduction of new concepts, Greece has implemented the “deemed supplier” concept, which substantially streamlines the tax process for specific online transactions. According to the EU VAT Directive, a digital marketplace operator is classified as a “deemed supplier” in two particular cases:

• When goods valued at EUR 150 or less are imported from outside the EU, and when the original suppliers sell directly to EU customers using the intermediary services of the digital marketplace or 
• When goods in free circulation within the EU are offered by vendors whose residence is outside the EU to customers based in the Member States through the usage of the facilitation service provided by the digital platform 

This approach simplifies tax obligations for digital marketplace transactions, aligning Greece’s VAT practices with EU standards and supporting a more unified digital market environment.

These provisions ensure a more straightforward VAT process for digital marketplaces and their transactions within the EU.

This adoption reflects Greece’s dedication to adhering to EU VAT standards, aiming to improve the transparency and uniformity of tax regulations applicable to digital sales. Consequently, this adjustment introduces new obligations for deemed suppliers, significantly altering the VAT implications of this sales model.

This regulatory framework introduces additional responsibilities for deemed suppliers, vastly changing this sales model’s VAT obligations for taxable entities. In this multi-sided business model, we have two separate transactions: 

1. The initial supply from the original vendor to the digital platform is recognized as a business-to-business (B2B) transaction.
2. The subsequent supply from the platform to the final consumer is classified as a business-to-consumer (B2C) transaction.

This ensures compliance and facilitates smoother operations under the simplified tax framework provided by the EU.

Invoice Requirements in Greece 

General invoice information:

• Date of invoice issuance;
• Date of the supply of goods or provision of services if different from the date of the invoice issuance;
• Unique invoice numbers issued in sequence.

Seller information:

• Company name;
• Full address(head office);
• Billing address if different from company address;
•  VAT number.

Customer information:

• Name;
• Full address;
• VAT number;
• Delivery address;
• The billing address is different from the delivery address.

Fiscal Information:

• Description and breakdown of the goods or services – quantity, discounts, unit price excl. VAT;
• Total without VAT;
• VAT amount in EUR;
• The VAT rate(s) applied and the breakdown of VAT per rate;
• Invoice Total.

Additional information required in particular cases:

• Exemption reference – guaranteed by precise norm;
• Reverse charge – term if applicable;
• Self-billing – term if applicable;
• Tax Representative information for non-resident business.

Foreign Currency Invoice in Greece  

In Greece, it’s permissible to issue tax invoices in foreign currencies, but the VAT amount on the invoice must be shown in local currency.

VAT Return in Greece 

Domestic returns

Domestic taxpayers and non-established foreign businesses who conduct business under the national VAT Greece rules should submit monthly or quarterly declarations. 

Penalties for late reporting and omitted declarations 

Taxpayers should charge Greece VAT on their transactions when the responsibility rises and submit the VAT return. If they do the return fillings after the deadline, they can expect to allocate more funds than they would if they had filled the return within the permitted time frame. 

In the case of the late filing of VAT returns and payments, the Greek Tax Authorities enforce the following penalties:

• In the cases when the tax authority issues a tax correction act(e.g. after an audit) due to an incorrect declaration a fine in the value of 50% of the tax due can be defined;

• One-off penalty for late or incorrect declaration can be defined in the range between EUR 100-500.

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