While the European Union (EU) sets broad rules on tax, Greece — like other EU member states — still sets its own value added tax (VAT) rates, which goods are subject to. An exception is the minimum standard VAT rate, which must be above 15%. This is the minimum VAT rate each of the EU member states must apply when supplying most goods and services.

There are also rules on which goods may be within the reduced VAT rate brackets. It’s  important for businesses to use the correct rates since they could be liable for any shortfall.

There is no minimum threshold for VAT registration in Greece. Any individual or business operating in the country conducting ‘economic activity’ is required to register for VAT. Economic activity includes production, mining, agriculture, and services. It also includes taxable persons who generate revenue from tangible or intangible goods and services. 

The VAT registration threshold for EU VAT-registered companies selling goods over the internet — distance selling — to consumers in Greece is €35,000 per annum.

Domestic businesses in Greece must register with the tax authority and get a tax registration number. This number also serves as a VAT registration number, and is used for all tax matters — there is no separate registration for VAT. The documentation required for registration depends on the type of business completing the registration process. 

EU member businesses operating in Greece can register for VAT with their country of establishment with the Tax Office ‘A’ of Athens. Non-EU businesses must appoint a fiscal representative to complete the process on their behalf. This includes the fiscal representative submitting a power of attorney, the company’s articles of association, and a certificate of good standing. The documentation must also be translated into Greek, and not submitted in English. 

All VAT numbers are usually issued to successfully registered businesses within one week of the submission. 

The penalty for non-registration is €2,500. A penalty equal to 50% of the non-paid VAT amount is imposed if failure to register for VAT is discovered during a tax audit.

Once a business gets its VAT registration number, it is obliged to follow the rules on VAT accounting, invoices, rates, and other procedures. This includes:

• Only issuing invoices with the disclosure details outlined in the Greek VAT Act
• Correct invoicing of customers for goods or services in accordance with the Greek time of supply VAT rules
• Use of e-invoices, which must be in accordance with the latest Invoicing Directive
• Upkeep of VAT books and other records to support VAT returns, Intrastat, and ESL declaration

The tax point (time of supply) is the time VAT becomes due. In Greece, as in other countries, tax is due when the goods are placed at the customer’s disposal or upon completion of a service. 

If a business issues an invoice before the tax point, the tax is due by the date of the invoice.

The VAT is then payable to the tax authorities 10 days after the VAT reporting period ends (monthly or quarterly).

Prepayments or advanced payments do not typically create a tax point­, except in the case of intra-community supplies of services.

For intra-community acquisitions and supplies, the tax point occurs on the invoice date or the 15th day of the month following the month in which the invoice was issued (whichever occurs earlier).

The tax point for imports occurs when the goods are imported as per the relevant import documents.

There is no penalty for late payment of VAT. Instead, the taxpayer must pay interest calculated on the VAT due from the end of the statutory deadline until the date of payment.Non-payment and late payment of VAT