Greece VAT Rules

E-learning activities:

Ε-learning services, provided of course they are not teaching services, where the course content is delivered by a teacher over the Internet or an electronic network (Implementing Regulation 282/2011 article 7 par. 3 (j)), are included in the indicative list (see Annex VII of the Greek VAT Code L.2859/2000) of the electronically supplied services and therefore are treated as such and are subject to the standard Greek VAT rate (see article 21 par. 1 of the Greek VAT Code L.2859/2000).

E-learning services are exempt from VAT when they refer to pre-school, school and university education and vocational training provided by bodies governed by public law or by other organizations recognized by the greek competent authority. E - learning services are also exempt when they refer to foreign languages and computer education. They are not exempt when they are recreational or amateur in nature. E-learning services supplied by private institutions may be exempt upon strict conditions.

Reference to the above may be found in article 22 of the Greek VAT Code L. 2859/2000.

Gambling activities:

E-Gambling activities are exempt from VAT with no right to deduct input VAT, as long as they are performed by bodies, regulated by the Gambling Committee [The Gaming Supervision and Control Commission (GSCC)], in accordance with the Greek Act on Gambling.

Reference to the above can be found in article 22 of the Greek VAT Code L. 2859/2000.

There is no written guidance in Greece as regards the VAT treatment of bonus points/credits earned in relation to e-gambling activities.

General:

There are no further exemptions in the Greek VAT legislation under which the supply of telecommunications, broadcasting and electronic services provided to non-VAT taxable persons may fall.

Invoicing:

Yes

Invoicing comment:

In Greece, generally speaking, an invoice should be issued for any type of supplies. With respect to services (including telecommunications, broadcasting and electronic services) provided to non – VAT taxable persons, the relevant law states that a retail receipt may be issued instead (or any other record with the same content). In practice, a special "Billing Note" is issued with respect to such supplies which includes the mandatory details of a retail receipt. No specific guidelines regarding services reported under the MOSS have been issued to date. Reference to the above may be found in article 8 and 12 of L.4308/2014 Greek Accounting Standards, Related and Other Provisions. <!--break--> Retail receipts issued in Greece must contain the date of issuance, the sequential number, the supplier's tax identification/VAT number and his full personal particulars (i.e. name and address), the gross sale value and the corresponding VAT rate. Retail receipts can be in any language, but it should be expected that a translation in Greek may need to be provided promptly upon request of the competent tax authorities. Reference to the above may be found in article 3 par. 7, article 5 par. 17 and article 12 par. 2 of L. 4308/2014. <!--break--> According to article 12 par. 5 of L.4308/2014, any other document containing the data of the retail receipt shall be assimilated as a retail receipt and a copy of it shall be delivered, sent or made available to the customer. <!--break--> With respect to services, a retail receipt is issued upon completion of the supply. In case of continuous services (telecommunications, broadcasting and electronic services) a retail receipt maybe issued when the consideration becomes partially due for the part of the supply that has already been performed but no later than completion of the entire supply. No specific guidelines regarding services reported under the MOSS have been issued to date. Reference to the above may be found in article 13 of L.4308/2014. <!--break--> In Greece no summary retail receipts can be issued for the supply of telecommunications, broadcasting and electronic services provided to non-VAT taxable persons. Retail receipts can be issued and delivered electronically in Greece. The authenticity of origin and the integrity of content must be secured from issuance to end of mandatory archiving period. Reference to the above may be found in articles 14 and 15 of L. 4308/2014 of the Greek Accounting Standards, Related and Other Provisions. <!--break--> In Greece, it is possible when batches of electronic invoices are sent or made available to the same person, the repeated indications on the various invoices may be given only once, when all the information on each invoice can be accessed. Reference to the above maybe found in article 14 par. 4 L. 4308/2014 Greek Accounting Standards, Related and Other Provisions. <!--break--> It should be noted that Greek invoicing rules apply to businesses that have registered through either the EU MOSS or the non EU MOSS and have chosen Greece as their M-S of Identification (registration).

As a Member State of consumption, do you require an additional claim before making a reimbursement?:

Reimbursement threshold as Member State of consumption:

Release from payment of insignificant amounts of VAT:

Any debit balance arising upon submission of the periodic VAT return is payable to the Greek State when higher than EUR 30. When lower than EUR 30, the balance is carried forward to the following tax period. However, in accordance with the newly introduced provision, such relief is not available with respect to services under MOSS.

Reference to the above may be found in article 38 par. 6, article 47b par. 8 and article 47c par. 6 of the Greek VAT Code L. 2859/2000.

Failure to register and late registration:

For late (voluntary) registration for VAT purposes, a penalty equal to the amount of EUR 102,40 (i.e. EUR 100 plus a surcharge of EUR 2,40) applies.

For non-registration the penalty is EUR 2,500. Since registration under MOSS is not mandatory this penalty is actually imposed due to failure to register for VAT purposes in Greece.

Reference to the above may be found in Article 54 of L.4174/2013 (Greek Tax Code of Procedures).

Apart from the above, a penalty equal to the 50% of the non-paid VAT amount is imposed if failure to register for VAT purposes in Greece is traced in the course of a tax audit (Reference to article 58A par.3 of Law 4174/2013).

For violations of the same nature it is the higher of the above penalties that applies (Reference to article 62 par. 6 of L.4174/2013).

Note that the above applies under the current legislation. Each case, especially when it entails historic exposure, must be examined on an ad hoc basis.

Incomplete and incorrect VAT returns:

In case of inaccurate VAT returns resulting in the non-payment or reduced/partial payment or  refund (or deduction) of larger VAT amounts, a penalty equal to 50% of the VAT amount due calculated on the difference (between the VAT amount paid and the VAT amount due on the basis of the corrective tax assessment act) is imposed (article 58A par. 2 of Law 4174/2013). This penalty applies only when assessed in the course of a tax audit.

The submission of a late amending VAT return does not give rise to a procedural penalty in case the initial VAT return was timely submitted. Interest for late payment may be incurred.

Note that the above applies under the current legislation. Each case, especially when it entails historic exposure, must be examined on an ad hoc basis.

Non-compliance with invoicing and accounting obligations:

With respect to VAT liable transactions, in cases of non-issuance or inaccurate issuance or inaccurate reception of records (invoice or retail receipt), a 50% penalty for VAT purposes is imposed on the VAT amountwhich should be mentioned on the non-issued record and 50% penalty on the difference between the VAT amount mentioned on the already issued record and the VAT that ought to have been mentioned on this record (art.58A par.1 L.4174/2013).

The said penalty is applied in the course of the same tax audit and cannot be less than €500 for double-entry accounting books or €250 for single-entry books, in total for every tax audit. Such a penalty is imposed only if traced in the course of a tax audit.

In case the same infringement is traced in the course of a subsequent tax audit within a period of 5 years from the issuance of the initial audit act, the penalty is 100% of the VAT that should be mentioned on the non-issued record or 100% of the difference between the VAT mentioned on the issued record and the VAT that ought to have been mentioned on this record. The said penalty cannot be less than €1.000 for double-entry accounting books or €500 for single-entry books, in total for every tax audit. (article 58A par.1 L.4174/2013).

In case of tracing any same infringement during a subsequent tax audit within five years from the issuing of the initial audit act, the penalty is 200% of the VAT that should be mentioned on the non-issued record or 200 % of the tax difference respectively and cannot be less than €2.000 for double entry accounting books or €1.000 for single entry books, in total for every tax audit (article 58A par.1 L.4174/2013).

Please also note that a 50% penalty of the VAT that has not been paid to the State, is imposed to each person which is not liable for filing VAT returns, but issues tax records including VAT (article 58A par. 4 L. 4174/2013).

It should be noted that VAT penalties that are imposed for VAT infringements with respect to non–compliance with invoicing and accounting obligations or exercising VAT liable activities without registration, are deducted from the VAT penalties provided for incorrect VAT returns, under certain circumstances, as provided by paragraph 5 of article 58A (L. 4174/2013).

Note that the above applies under the current legislation. Each case, especially when it entails historic exposure, must be examined on an ad hoc basis.

Non-payment and late payment of VAT:

There is no penalty for late payment of VAT. In case of late payment or non-payment of the VAT due, the taxpayer must pay interest calculated on the VAT due from the end of the statutory deadline until the date of payment. The applicable interest rate is determined in relation to the European Central Bank's main refinancing operations interest rate plus 8,51 points annually (Ministry of Finance documents ΔΠΕΙΣ 1198598 ΕΞ 31.12.2013). Currently the applicable rate is 8,76% annually (0,73% monthly) and it applies for tax obligations, tax periods, accounting periods, cases or tax years as from 1 January 2014 onwards.

Reference to the above may be found in articles 53 of L.4174/2013 (Greek Tax Code of Procedures) and article 1 of Section II of Circular Pol. 1252/2015. Note that the above applies under the current legislation. Each case, especially when it entails historic exposure, must be examined on an ad hoc basis.

Non-submission and late submission of VAT returns:

In case of late or non-submission of VAT returns, a procedural penalty applies depending on the books kept by the business (250 EUR for single entry books and 500 EUR for double entry books) per violation. The penalty is reduced to EUR 102,40 (i.e. EUR 100 plus a surcharge of EUR 2,40) when no VAT becomes due from the VAT Return. No penalty is imposed for late submission of an amending VAT return in case the initial VAT return was submitted on time. Reference to the above may be found in article 54 of L.4174/2013 (Greek Tax Code of Procedures).

Moreover, in case of non-submission of a VAT return, a penalty equal to the 50% of the VAT amount due on the basis of the non-submitted VAT return will be imposed (article 58A par. 2 of Law4174/2013). This penalty applies only when assessed in the course of a tax audit.

For violations of the same nature it is the higher of the above penalties that applies. (Reference to article 62 par. 6 of Law 4174/2013)

Note that the above applies under the current legislation. Each case, especially when it entails historic exposure, must be examined on an ad hoc basis.

VAT Registration Process:

Registration under the MOSS can be made via the portal of the Greek Tax Authorities (TaxisNet).

Registration applications can be submitted online, following the links below:

Union scheme (direct link) : https://www1.gsis.gr/sgsisapps2/moss-web/

Non-Union scheme (direct link):

https://www1.gsis.gr/sgsisapps2/moss-web/public/ldapRegistration.html

or through the MOSS application link :

https://www.aade.gr/epiheiriseis/forologikes-ypiresies/fpa/moss

Validation of the registration applications will be forwarded to the competent tax authority for final review and approval.

Appointment of a VAT Agent:

In case the supplier registers for MOSS in Greece, the appointment of a VAT representative is not required.

Since MOSS registration is not mandatory, if the supplier, established elsewhere in the EU, is not MOSS registered, he will be obliged to acquire a VAT number in Greece either through the appointment of a VAT representative or electronically. In the case of non-EU supplier, if he is not MOSS registered, he should appoint a VAT representative.

Deferment and Cash Accounting Scheme:

In Greece, VAT on telecommunications, broadcasting and electronic B2C services becomes chargeable at the earliest of when the services are completed or when the respective record (i.e. invoice or retail receipt) is issued (according to the relevant legislation in force). Reference to the above may be found in the Greek VAT Code - article 16 par. 1 & 2 L. 2859/2000 and article 13 of L. 4308/2014 Greek Accounting Standards, Related and Other Provisions.

The cash accounting scheme does not apply to supplies towards retail customers, thus not to services under MOSS. Reference to the above may be found in the Greek VAT Code -article 39B par. 4 of L. 2859/2000.

Continuous supplies:

In Greece, VAT on continuous supplies of services becomes chargeable at the earliest of when the relevant record (invoice or retail receipt) is issued (according to the relevant legislation in force) or the supply is completed.

For continuous supplies of services, a retail receipt should generally be issued when part of the consideration becomes due and for the part of the service already performed (e.g. on a monthly, quarterly etc. basis). An invoice should be issued up to the 15th day of the month following the period in which part of the consideration became due and for the part of services already supplied.

Reference to the above may be found in the Greek VAT Code Article 16 par. 2 of L. 2859/2000 and articles 11 and 13 of L. 4308/2014 Greek Accounting Standards, Related and Other Provisions.

Additional obligations deemed necessary for collecting VAT and preventing evasion (anti-avoidance measures):

Article 38 of the new Tax Procedures Code (L. 4174/2013), as has been amended, provides for a general anti-abusive rule.

According to this rule, the Tax Administration may disregard any artificial arrangements or series of arrangements that have been set up in order to gain a tax benefit that cancels the scope or target of the relevant tax legislation, and is/are not genuine, taking into account all evidences and circumstances.

The guidelines that have been issued so far by the Tax Administration as to the content and application of the provision, do not focus on VAT (see Circular E. 2167/2019).

The rule is quite general yet it is to be noted that it is intended to cover artificial schemes aiming to tax avoidance (Circular E. 2167/2019).

Bad Debt relief:

In Greece, bad debt relief is not available with respect to the supply of telecommunications, broadcasting and electronic services provided to non-VAT taxable persons.

Re-valuation of services at open market value:

Greece has incorporated article 80 of the VAT Directive into national Law.

The relevant provisions (Article 19 par. 2.d of the VAT Code - L. 2859/2000) cover supplies between persons with family ties (relatives) or/and associated persons according to the relevant definitions of the Income Tax Code (L. 4172/2013).

The taxable amount concerning the supply of goods and services between relatives and/or associated persons, as defined in L. 4172/2013 (Income Tax Law), is to be the open market value:

• where the consideration is lower than the open market value and the recipient of the supply does not have a full right of deduction
• where the consideration is lower than the open market value and the supplier does not have a full right of deduction and the supply is subject to an exemption
• where the consideration is higher than the open market value and the supplier of the goods or services does not have a full right of deduction

The relevant definitions in question are the following:

• "relative": means the husband/wife and the lineal antecedents or lineal descendants
• “associated person”: every person, that participates directly or indirectly in management, control or capital of another person, which is a relative or is associated to. In particular, the following persons can be considered as being associated persons:
  • every person that owns either directly or indirectly stocks, shares or participation to the capital by at least 33%, in terms of value or number, or rights to profits or voting rights
  • two or more persons, if one of the persons owns either directly or indirectly stocks, shares or participation to the capital by at least 33%, in terms of value or number, or rights to profits or voting rights
  • every person with whom/which there is a relation of either direct or indirect essential administrative dependence or control or exercises decisive influence on another person or in case both persons are parts of a relation of direct or indirect essential administrative dependence or control or ability of decisive influence being exercised upon them by a third person.

Reference to the above may be found in article 2 of the Income Tax Law L. 4172/2013.

Use and Enjoyment:

In Greece, there is a use and enjoyment rule applicable to telecommunications, broadcasting and electronic services provided to non-VAT taxable persons.

Accordingly, if the place of supply is a non-EU country (i.e where the recipient is located or has his permanent/habitual residence outside Greece), but the service is used and enjoyed in Greece, it will be taxable in Greece.

The service will be considered to be used and enjoyed in Greece, if the customer is in Greece at the time of supply. Reference to the above may be found in the Greek VAT Code - article 14 par. 13 & 15 of L. 2859/2000, as amended by article 104 of L. 4316/2014.

VAT Treatment of vouchers:

Council Directive (EU) 2016/1065 as regards the VAT treatment of vouchers has been transposed into national Law see L. 4607/2019 articles 8 and 9 amending Greek VAT Code - L. 2859/2000 and Circular E. 2111/2019.