VAT in Greece: Rules, Registration, and Compliance Guide

VAT in Greece: Rules, Registration, and Compliance Guide

Value Added Tax (VAT) in Greece applies on most goods and services at a standard rate of 24 percent. A reduced rate of 13 percent applies to selected goods and services such as food, water supply, passenger transport, and hotel accommodation. A super-reduced rate of 6 percent applies to some items including medicines, books, and theater tickets. There is no general turnover threshold for VAT registration in Greece. Businesses carrying out taxable supplies must register from the first taxable transaction. Foreign companies supplying taxable goods or services in Greece must also register immediately. This blog explains VAT rates and applicability in Greece, registration rules including small enterprise treatment, compliance steps, cross-border supply rules, and possible penalties.

VAT Rates and Applicability in Greece

Greece applies VAT on most supplies of goods and services within the country. The standard rate is 24 percent. A reduced rate of 13 percent applies on specific categories such as food, water supply, restaurant services, passenger transport, and hotel stays. A super-reduced rate of 6 percent applies on items like books, newspapers, pharmaceuticals, and theater admissions. Certain supplies may qualify for a zero percent rate when goods are exported outside the EU or supplied to another EU member state under proper documentation. 

Other supplies are exempt from VAT which means VAT is not charged and input VAT cannot be reclaimed. Exemptions cover financial services, insurance, certain medical and educational activities, and some real estate transactions. The correct VAT rate depends on the type of supply, the supplier’s and recipient’s status, and whether cross-border trade rules apply.

VAT Registration and Small Business Exemption

Domestic business registration:
 In Greece there is no general turnover threshold for VAT registration. Any business or person making taxable supplies must register from the first taxable sale. A small enterprise scheme applies under EU rules to domestic businesses with annual turnover up to ten thousand euros. These small enterprises may benefit from simplified VAT obligations. However, they must still register and report taxable activities.

Foreign or non-resident business registration:
 Foreign companies supplying taxable goods or services in Greece must register for VAT immediately. No threshold applies to non-resident businesses. EU sellers making distance sales to Greek consumers must apply Greek VAT once total EU sales exceed ten thousand euros. The EU One Stop Shop (OSS) system allows such sellers to report VAT through a single online portal for all member states.

VAT Compliance: Returns, Deadlines, and Records

A business registered for VAT in Greece will file VAT returns, keep complete records, and issue invoices on all taxable transactions. Most businesses file quarterly with deadlines on the 26th day of the month following the end of the quarter. Larger businesses or businesses in specific sectors file monthly, with deadlines on the 26th day of the following month. Returns are submitted on the Independent Authority for Public Revenue (IAPR) portal and payments are made on the same day of submission.

All invoices, receipts, contracts, and other VAT records of a business are kept for ten years. Each invoice shows the supplier’s VAT number, the taxable amount of the transaction, the VAT rate applied, and the total amount due including VAT. All records are submitted electronically on the myDATA platform of the Independent Authority for Public Revenue. Proper record keeping ensures accurate VAT reporting, supports tax audits, and reduces the risk of errors, penalties, or interest charges.  

Cross-Border Rules for Greece VAT

Exports outside the EU:
 Goods sent from Greece to non-EU countries are subject to a 0 percent VAT rate when customs documents and proof of shipment are available. The seller must keep these records for verification by the tax office.

Intra-EU Supplies:
 Sales to VAT-registered businesses in other EU member states qualify for a 0 percent intra-community rate when the goods are moved to that country and the buyer’s VAT number is confirmed. The supplier must store evidence of transport and validation.

Business-to-Consumer Sales:
 EU businesses that sell goods to Greek consumers with total annual sales above ten thousand euros must apply Greek VAT. Sellers can report and pay through the One Stop Shop system. Providers of digital services to Greek consumers must charge Greek VAT on those transactions, regardless of their location or presence in Greece.

Steps to Register and Commence VAT in Greece

1. Identify the Competent Tax Office:
    Find the tax office that handles VAT matters for your business based on its activity or place of establishment.
2. Gather the Required Documents:
    Prepare business registration proof, articles of incorporation, tax identification number, and projected yearly turnover.
3. Submit the VAT Registration Application:
    File the VAT registration form with the Greek tax authority in person or through an authorized representative.
4. Obtain the VAT Identification Number:
    After receiving your VAT number, issue VAT invoices on taxable transactions, collect VAT on sales, and submit regular returns through the official system.
5. Monitor Compliance and Reporting:
    Track business turnover and supply details to confirm correct VAT handling and accurate submissions on the IAPR portal.

Penalties, Audits, and Risk Mitigation

The Greek tax authorities will impose penalties on a business for late VAT return filing non-payment of VAT or incorrect VAT reporting. Interest applies on unpaid VAT and fines will follow errors in submitted returns. VAT audits may review several years depending on reported activity. A business must issue accurate invoices, apply the correct VAT rate on each taxable transaction and maintain complete records of all VAT activity under the Independent Authority for Public Revenue.

An accounting system aligned with IAPR rules supports correct reporting and reduces errors. Working with a local VAT specialist helps a business follow filing requirements, avoid mistakes and limit exposure to interest fines or other penalties from the authorities.

Conclusion

Greece applies a standard VAT rate of 24 percent and reduced rates of 13 percent and 6 percent on essential items of food, medicines and books. Some supplies have zero percent VAT or full exemption. There is no turnover threshold for VAT registration and a business registers on the first taxable transaction. Domestic small enterprises with an annual turnover up to ten thousand euros use simplified VAT treatment. Foreign companies supplying taxable goods or services in Greece register immediately.

Registered businesses file all VAT returns, issue correct invoices on every taxable transaction and maintain complete records of VAT activity for ten years. Non-compliance results in penalties and audits by the tax authorities. Businesses should verify their VAT status, apply the correct rates to every transaction, and use an accounting system that provides accurate reporting and full compliance with the rules.

FAQs

1. What is Greece’s standard VAT rate?
    The standard VAT rate in Greece is 24 percent and will apply on the sale of most goods and services in the country.
2. What are the reduced VAT rates in Greece?
    The reduced VAT rate is 13 percent and the super-reduced rate is 6 percent applied on essential items of food, medicines and books sold within Greece.
3. Who qualifies for the small business exemption in Greece?
    Domestic small enterprises with an annual turnover up to ten thousand euros will benefit from a simplified VAT obligation and will have easier compliance with the rules of the tax authorities.
4. Do non-resident businesses have a threshold for VAT registration in Greece?
    No. non-resident businesses will register immediately on the supply of taxable goods or services in Greece and have no turnover threshold for registration.
5. What happens if VAT returns in Greece are filed late?
    Late VAT filings will result in a charge of interest, a fine or audits conducted by the Greek tax authorities.