VAT registration in Greece

 Why do you need VAT registration in Greece?

Value Added Tax (VAT) is a key component of the tax system in Greece, impacting both domestic and foreign businesses. If your business engages in taxable activities in Greece, understanding VAT registration, filing obligations, and deregistration procedures is crucial. This guide provides an in-depth look at Greece’s VAT system for businesses.

  • Mandatory Registration:
    • Businesses supplying goods/services in Greece with taxable turnover exceeding €10,000 annually (distance sales threshold for non-EU sellers).
    • EU businesses selling goods to Greek consumers under the “distance selling” threshold (€10,000).
    • Non-EU businesses importing goods into Greece or storing goods in Greek warehouses.
  • Voluntary Registration: Businesses with turnover below thresholds can register voluntarily to claim VAT refunds.

What documents required for Greece?

    • Company registration certificate
    • Tax identification number (TIN)
    • Proof of business address
    • Passport or ID of legal representatives
    • Power of attorney (if using a tax representative)

Appointment of a Tax Representative: Non-EU businesses must appoint a local fiscal representative.

VAT Number Issuance: Once approved, a Greek VAT number (AFM) is issued.

The VAT registration process can take from a few weeks to a month, depending on the complexity of the application.

VAT Filing & Payment in Greece:

VAT Filing Requirements

    • Monthly: For businesses with annual turnover over €100,000.
    • Quarterly: For smaller businesses (turnover under €100,000).
    • Annual Summary: Submit an annual VAT return by 31 March of the following year.

VAT Filing Deadlines:

    • Monthly/quarterly returns: Filed electronically by the 20th of the following month.
    • VAT payments: Due by the 25th of the following month.

VAT Rates: Standard rate is 24% (reduced rates of 13%, 6%, or 0% apply to specific goods/services).

Penalties: Late filings incur fines of €50–€500; late payments face interest (8.7% annually).

When should a business deregister for VAT?

Businesses may apply for VAT deregistration under the following circumstances:

  • Ceasing Operations: If the business is permanently closing.
  • Change of Business Activities: If the business no longer engages in taxable transactions.
  • Falling Below the VAT Threshold: Small businesses that no longer meet the registration threshold may apply.
  • Company Relocation: If the business moves its operations outside Greece.

How to deregister for VAT in Greece?

Submit a Deregistration Request: Notify AADE via Form E2 (non-residents) or M2 (residents) within 30 days of ceasing operations.

Final VAT Return: File a final return covering the period up to deregistration.

Tax Clearance Certificate: The tax authorities may conduct an audit to ensure compliance before approving deregistration.