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VAT Registration in Greece

Updated on Thursday 02nd December 2021

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VAT-Registration-in-Greece.jpgGreece is a country that has a tax system which follows the European Union (EU) model. This also refers to the value added tax (VAT), which is one of the ways through which the Greek institutions collect funds from taxable goods and services sold on the Greek market
 
VAT registration in Greece is compulsory for a wide category of services and goods providers, which will be presented in this article. It is worth knowing that if you want to open a company in Greece, you will be required to register for VAT purposes, following the national tax laws. Our specialists in company formation in Greece can present the main tax obligations you will have in this case. 
 

When should an entity register for VAT in Greece?

 
There are numerous scenarios that can determine the need to register for VAT. One of them is when one starts the process of company registration in Greece, as companies registered here are generally liable to the payment of VAT, unless an exemption is granted in specific circumstances. The registration for VAT implies that the company will be issued with a Greek VAT number
 
However, not only those who open a company in Greece can be liable for the payment of this tax. Companies registered in other states can become VAT payers in Greece in the case in which they will sell goods and services to Greek customers. This obligation is extended to online companies as well. In the list below, our team of consultants in company formation in Greece has prepared a presentation on the main VAT payers:
 
  • the need to have a Greek VAT number and, thus, to register for VAT, is applied to those who buy and sell goods in Greece;
  • entities that import goods from outside the EU also need to register;
  • entities selling goods from Greece to customers outside Greece must also pay VAT;
  • the purchase of goods from the EU is also subjected to VAT;
  • e-commerce activities where goods are bought by Greek customers are charged with the VAT, once a certain threshold is achieved. 
 

What are the VAT rates in Greece?

 
Once a company will receive a VAT registration number in Greece, it will have tax obligations in accordance with the applicable law. The amount of VAT to pay will be calculated depending on the tax rate charged to the types of services and products that the company will sell in Greece. Currently, the following apply: 
 
  • if you are setting up a company in Greece that provides goods and services included in the general list of goods and services, you will be charged with a tax rate of 24%;
  • certain activities, such as accommodation or the sale of basic food products, are charged with the reduced tax rate, of 13%;
  • according to the Government of Greece, taxable entities can also be charged with the super-reduced tax, imposed at a rate of only 6%;
  • these 3 tax rates are charged at lower rates in specific Greek regions – thus, the 24% is charged at a rate of 17%, the 13%, at a rate of 9% and the 6%, at a rate of 4% in few Greek islands (Kos, Samos, Lesbos, Leros, Chios);
  • the latter tax regulation was established under the Decision A. 1272/2020, the 30% reduction VAT regime
 

What are the VAT obligations for foreign companies in Greece?

 
In this section, our team of specialists in setting up a company in Greece will present information the obligations of foreign companies selling goods in this country. As a general rule, all foreign companies, regardless if they have a permanent establishment in Greece or not, are required to conclude various VAT procedures
 
This means that they will need to apply for a VAT registration number in Greece and they must pay VAT accordingly, as well as to submit VAT returns when required. For foreign companies, the Greek law does not prescribe a minimum annual threshold for the taxable amount, but the law imposes a threshold for foreign companies which develop online sales operations. 
 
In the latter case, the obligation to obtain a Greek VAT number and to pay the VAT is imposed when the company reaches a turnover of EUR 35,000. For all other companies, the obligation to be registered for VAT purposes in Greece must be concluded prior to starting the business operations on the Greek territory
 
Once a company is a VAT payer, it must submit specific tax returns, in accordance with the accounting requirements that are imposed to local businesses. Thus, companies have to comply with the Greek requirements for issuing invoices, credit notes and maintaining accounting documents. For more details concerning this matter, we invite you to contact our team of specialists in Greek company formation, who can offer information on other VAT regulations available here.  
 

Meet us in Athens

Federico Richardson is our company formation expert in Greece and the founder of Lexidy Law Boutique SLP. 
He can assist clients with the entire company registration procedure in Greece.
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Call us now at +302111995654 to set up an appointment with our lawyers in Athens, Greece. Alternatively you can incorporate your company without traveling to Greece. 

As a Lexidy Law Boutique SLP client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Greece.

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