Value-Added Tax (VAT) is a key aspect of the Greek tax system, affecting most goods and services sold in the country. Businesses engaged in VAT-taxable activities need to comply with VAT tax filing Greece regulations to avoid penalties. 

This blog will explore everything businesses need to know about VAT returns in Greece, including the current VAT rates, who needs to register for VAT, filing deadlines, and more. 

By the end of this guide, you will have a solid understanding of how VAT works in Greece and how to stay compliant with Greek VAT laws.

What is a VAT Return in Greece?

A VAT return is a crucial document that businesses in Greece must submit to the Greek tax authorities to report the VAT they have collected from customers and the VAT they have paid on purchases. 

These returns are a key part of ensuring that businesses remain compliant with Greece’s VAT laws. VAT returns provide the authorities with detailed information on a business’s VAT liabilities and entitlements.

The importance of VAT returns cannot be overstated, as they help businesses manage their tax obligations while maintaining accurate records. Timely and correct VAT filings help businesses avoid penalties and audits. 

In Greece, VAT compliance is essential for businesses of all sizes, as failure to file correctly or on time can result in significant fines and reputational damage. 

Current VAT Rates in Greece

In Greece, the standard VAT rate is 24%, which applies to most goods and services. However, there are reduced rates for certain products and services. 

The reduced VAT rate of 13% applies to food, non-alcoholic beverages, transportation, and hotel services. Additionally, a 6% VAT rate is applied to medicines, books, and cultural services. 

There are also zero-rated VAT items, such as exports and certain international services. 

It is essential for businesses to understand the different VAT rates in Greece that apply to their products and services to ensure proper VAT collection and compliance with tax laws.

Who Needs to Register for VAT in Greece?

In Greece, businesses must register for VAT if they meet certain criteria based on their turnover and the nature of their operations. Here are some key criteria for determining who needs to register for VAT in Greece:

  • All Businesses Engaged in Taxable Activities: Any company or individual conducting taxable transactions (sale of goods or services, imports, exports) in Greece is generally required to register for VAT, regardless of turnover. 
  • Foreign and Non-EU Businesses: Foreign companies making taxable supplies in Greece must register for VAT from their first transaction. Non-EU businesses must appoint a local fiscal representative when registering.
  • Digital Service Providers: Businesses providing digital services or selling goods online to Greek consumers must register for VAT in Greece, regardless of their turnover, from the first sale.
  • EU Businesses: EU-based companies are not required to appoint a fiscal representative, but they must register for VAT if they make taxable supplies in Greece.
  • Distance Sales (EU): EU distance sellers register once sales exceed €10,000/year (via One Stop Shop) or comply with local thresholds.

How Often Must VAT Returns Be Filed in Greece?

In Greece, the frequency of VAT return filings depends on the size and nature of the business. Understanding when to file your VAT returns Greece is crucial for maintaining compliance with tax regulations and avoiding penalties. 

Here’s the Greece VAT Return Deadlines and frequency, based on VAT return filings:

Monthly Filers

  • Businesses using double-entry accounting books.
  • New businesses registered after April 1, 2025 (mandatory for the first two years).
  • Businesses with an annual turnover exceeding €1.5 million.

Quarterly Filers

  • Businesses using single-entry accounting books (smaller enterprises).
  • Non-resident businesses (foreign entities without a Greek establishment).
  • Businesses registered before April 2025 (unless they opt into monthly filing).

Annual Filers

  • Not applicable: Greece does not permit annual VAT returns. All businesses must file monthly or quarterly.

VAT Reporting Requirements in Greece

All businesses must report the VAT they have collected from sales (output VAT) and the VAT they have paid on purchases and business expenses (input VAT). The difference between these amounts determines whether the business owes VAT or is entitled to a refund. 

Businesses must also provide documentation for any exemptions, deductions, or special schemes applied. All returns must be submitted via TAXISnet (AADE’s online portal), ensuring that businesses file their VAT returns electronically.

VAT Return Deadlines in Greece

The deadlines for submitting VAT returns in Greece vary depending on the filing frequency. Here are the return deadlines for VAT in Greece

  • Monthly Filers: VAT returns are due on the last working day of the month following the reporting period. For example, January’s VAT return is due by the last working day of February.
  • Quarterly Filers: VAT returns must be filed by the last working day of the month following the end of the quarter. For example, Q1 (January-March) return is due by April 30.

Failure to meet these deadlines can result in penalties and interest charges, so businesses should keep track of the dates to ensure timely filings.

How to File VAT Returns in Greece?

To answer the question, “How to file VAT returns in Greece”, businesses need to follow a few important steps to ensure they comply with VAT regulations. 

Here are the steps involved in filing VAT returns in Greece:

  1. Register for VAT: Businesses must first register with the Greek tax authorities and obtain an EID (Tax Identification Number).
  2. Access the AADE Portal: After registration, businesses can log in to the AADE portal to complete and submit VAT returns online.
  3. Report Collected and Paid VAT: Businesses need to report the VAT they’ve collected on sales and the VAT they’ve paid on purchases or business expenses.
  4. Provide Supporting Documentation: Any exemptions or deductions claimed must be supported by relevant documentation submitted through the portal.
  5. Maintain Accurate Records: Keep detailed records of all transactions to ensure accuracy and avoid errors or penalties during filing.

VAT Invoicing Requirements in Greece

When issuing invoices in Greece, businesses must ensure that their invoices meet the country’s VAT invoicing requirements. An invoice must include the following details to be VAT-compliant:

  • The VAT number of the seller and buyer.
  • The date of issuance and transaction.
  • A clear description of the goods or services provided.
  • The total price excluding VAT, the applicable VAT rate, and the amount of VAT.
  • The total price including VAT.

Businesses must ensure that all invoices are issued correctly and that they comply with Greek VAT regulations to avoid complications during audits or VAT filings.

What VAT Can Businesses Deduct in Greece?

Businesses in Greece can deduct VAT paid on purchases (input VAT) as long as the purchases are for business purposes. Common deductible VAT includes:

  • VAT paid on goods and services used in business operations
  • VAT on purchases of raw materials, office supplies, and equipment
  • VAT on services provided by third-party contractors

To claim these deductions, businesses must keep proper records and invoices for all transactions. Non-business expenses or personal purchases are not eligible for VAT deductions. 

Additionally, businesses should keep detailed records for at least 5 years in case of a tax audit.

How to Recover VAT Credits and Refunds in Greece?

Businesses that pay more VAT on purchases than they collect on sales may be eligible for VAT credits or refunds. The process of recovering VAT can help businesses improve cash flow and ensure they don’t lose out on entitled tax credits. 

Here is the process for claiming VAT credits or refunds in Greece:

  1. Submit a VAT Refund Application: Businesses need to submit a refund application to the Greek tax authorities to claim VAT credits or refunds.
  2. Provide Proof of Eligible Purchases: Ensure that the VAT paid on eligible business expenses is documented accurately to support the refund claim.
  3. Processing Time: Refunds are typically processed within 1-3 months, but businesses must ensure that their VAT returns Greece are correct and complete to avoid delays.
  4. Refund Method: Refunds can either be issued via bank transfer or applied as a credit for future VAT payments, depending on the business’s preference.

VAT on Imports and Exports in Greece

For businesses involved in international trade, understanding VAT on imports and exports is crucial.

Imports: 

Goods imported into Greece are subject to VAT at the standard rate of 24%. Importers are required to pay VAT to customs upon entry, and they can reclaim this VAT as input VAT if the goods are used for business purposes, such as for resale or for use in production. 

This helps businesses avoid paying VAT twice and ensures that the tax burden remains on the final consumer. Importers must maintain accurate records, including invoices and customs documentation, to substantiate their claims for input VAT recovery. 

Exports: 

Exports from Greece to non-EU countries are generally zero-rated for VAT, meaning that no VAT is charged on the sale of goods shipped outside the EU. 

This exemption encourages Greek businesses to export goods and services globally by removing the VAT burden from international transactions. However, exporters must keep detailed documentation, such as proof of export (e.g., shipping records, export declarations), to substantiate the zero-rating.

Without proper documentation, businesses could face challenges in claiming the VAT exemption. Therefore, exporters should carefully track their international shipments to remain compliant and ensure they qualify for VAT exemptions on exports.

Reverse Charge Mechanism for VAT in Greece

The reverse charge mechanism shifts the responsibility of paying VAT from the seller to the buyer. This mechanism is applicable in specific situations and helps streamline VAT collection, particularly in cross-border B2B transactions. 

Here are some important aspects of the reverse charge mechanism in Greece:

  • Applies to Certain Services: The reverse charge is generally applied to specific services, such as those related to construction, telecommunications, and digital services.
  • B2B Transactions: The reverse charge mechanism applies primarily in business-to-business (B2B) transactions, especially within the EU.
  • Shift of VAT Responsibility: Under this mechanism, the buyer is responsible for reporting and paying VAT on the transaction rather than the seller.
  • Avoiding Errors in VAT Calculation: Both the buyer and seller must ensure accurate reporting of VAT to avoid errors and ensure compliance with VAT laws.
  • Simplifies VAT Collection: The reverse charge mechanism simplifies VAT collection in cross-border transactions by reducing administrative burdens for the seller.

Digital Services and VAT Obligations in Greece

Businesses that provide digital services, such as software, e-books, and online subscriptions, must adhere to VAT regulations in Greece. 

Here are the VAT obligations for digital services in Greece:

  • VAT on Digital Services: Digital services are taxed based on the location of the customer, meaning if the customer is in Greece, the local VAT rate applies.
  • MOSS Compliance: Businesses providing digital services are optional to comply with the Mini One Stop Shop (MOSS) scheme, which simplifies VAT reporting for cross-border sales within the EU.
  • Single VAT Return for EU Sales: Through MOSS, businesses can file a single VAT return for all EU sales of digital services, reducing the complexity of reporting in multiple jurisdictions.
  • Local VAT Rates Apply: Businesses (B2C specifically) must apply Greece’s local VAT rate of 24% when selling digital services to Greek customers.
  • Tracking Consumer Location: Businesses must accurately track the location of the customer to ensure they are applying the correct VAT rate for digital services.

Common VAT Compliance Mistakes to Avoid in Greece

Businesses should be aware of several common VAT compliance Greece mistakes to avoid penalties. Here are some commonly seen errors:

  • Incorrect invoicing: Failing to include the necessary details on invoices or applying incorrect VAT rates.
  • Missing VAT returns: Not filing VAT returns on time, or missing the deadlines.
  • Improper deductions: Claiming VAT deductions for non-business-related expenses or failing to provide proper documentation.

To avoid these mistakes, businesses should maintain accurate records, stay informed about VAT regulations, and seek professional advice if necessary.

VAT Penalties and Compliance Risks in Greece

Failure to comply with Greek VAT rules can lead to severe penalties, including:

  • Late Filing Penalties: Fixed fines apply for late VAT returns – €250 (single-entry bookkeeping) or €500 (double-entry). If no VAT is owed, the fine drops to €102.40. Underreporting found in audits can lead to penalties upto 50% of the unpaid VAT amount.
  • Interest on Overdue VAT: Interest is charged at a rate of 0.73% per month (approximately 8.76% annually) on overdue VAT until payment is made.
  • Tax Audits and Additional Penalties: Persistent or serious non-compliance can trigger audits, with further penalties (up to 50% of underpaid VAT) and potential criminal liability in cases of fraud.

To minimize these risks, businesses should ensure they file returns on time, keep accurate records, and stay up to date with any changes in VAT legislation.

Simplify Your VAT Registration and Filing in Greece with Commenda

Treading through VAT registration and filing can be complex, but with Commenda, businesses can streamline their VAT compliance processes in Greece. Our platform offers expert solutions tailored specifically to Greek VAT regulations, ensuring that businesses stay compliant and avoid costly penalties. 

From VAT registration to accurate filing and reporting, Commenda makes it easy for businesses to manage their VAT obligations efficiently.

Let Commenda handle the complexity of VAT compliance, so you can focus on growing your business. 

Ready to simplify your VAT registration and filing in Greece? Book a demo with us today.

FAQs about VAT Returns in Greece

Q. What is VAT, and why do I need to file VAT returns in Greece?

VAT (Value-Added Tax)is a tax applied to most goods and services in Greece. Businesses file VAT returns to report VAT collected on sales and VAT paid on purchases to stay compliant with Greek tax laws.

Q. How often do I need to submit my VAT returns in Greece, and what is the deadline?

The frequency of VAT returns in Greece depends on your business’s VAT liability:

  • Monthly: Businesses with VAT liabilities over €1,000 per month.
  • Quarterly: Businesses with VAT liabilities between €25 and €1,000 per month.
  • Annually: Businesses with VAT liabilities under €25 per month. VAT returns must be filed by the 20th of the following month or quarter.

Q. What happens if I miss the VAT return deadline in Greece?

Missing the deadline results in penalties of 5% per month (up to 35%) and interest at 13% annually. Repeated late filings can trigger an audit.

Q. How do I calculate the VAT I owe or the refund I’m entitled to in Greece?

Subtract the VAT paid on purchases (input VAT) from VAT collected on sales (output VAT). If you owe VAT, pay it; if you’ve paid more VAT on purchases, you may be entitled to a refund.

Q. What should I do if I make an error on my VAT return in Greece?

Submit an amended return via the Greek tax authority’s portal as soon as you notice the error to avoid penalties.

Q. Can I claim VAT refunds on business expenses in Greece?

Yes, businesses can claim VAT refunds on eligible business expenses, provided they keep accurate records and submit correct VAT returns.

Q. What records do I need to keep for VAT purposes in Greece?

Keep detailed records of all VAT-related transactions (invoices, receipts) for 5 years to comply with Greek tax regulations.

Q. Do I need to register for VAT in Greece if my business is based outside of Greece?

Yes, if your business exceeds the registration threshold or engages in cross-border trade, you must register for VAT in Greece.

Q. Are there any penalties for submitting inaccurate VAT returns in Greece?

Yes, inaccurate returns can lead to 5% penalties per month, with higher fines for significant errors or fraud, and may lead to audits.

Q. How can I file my VAT returns in Greece (online/offline options)? 

VAT returns must be filed electronically through the Greek tax authority’s online portal (AADE). There are no offline filing options.