GREECE: COVID-19 VAT IMPLICATIONS

Apr 9, 2020 | COVID-19

GREECE– Update 23rd September

The Greek Public Revenue Authority (AADE) has published Circular E. 2146 of 8 September 2020, which clarifies the application of the extension of reduced VAT rates to music books and sports games tickets by Law 4714/2020, which was published 31 July 2020 for the implementation of the EU VAT “quick fixes”. This includes that the reduced 6% VAT rate for music books applies for the supply of books for all kinds of music, orchestral or vocal, printed or handwritten, illustrated or not, and all types of notations including keys, symbols, numeric symbols, braille code, etc. The reduced 6% VAT rate for sports games tickets applies for the supply of tickets issued for any type of sports game issued from 1 September 2020 to 30 June 2021.

Source Credit – Orbitax.com

 

GREECE– Update 16th June

Greece adopts favourable VAT measures to strengthen the tourism

Greece Clarifies Application of 13% Reduced VAT on Certain Supplies due to COVID-19

The Greek Public Revenue Authority (AADE) has published Circular E. 2080 of 5 June 2020 on the application of the 13% reduced VAT on certain supplies in response to COVID-19. The Circular confirms that the 13% rate applies from 1 June to 31 October 2020 on:

  • Any type of passenger transport, including transport by train, metro, and tram, by city and intercity buses, by plane, by ship, and by combined transport, as well as the transport of luggage;
  • Coffee and non-alcoholic beverages;
  • Services of cafes, restaurants, and pastry shops, including food services in hotels, which must be distinct from accommodation services; and
  • Cinema tickets.

Further, the Ministry of Finance issued a release clarifying that the reduced rate for transport services also applies for taxi fares.

 

Source Credit – Orbitax

 

GREECE– Update 3rd June

Greece’s tourism sector drops VAT as part of efforts for tourism relief

Greece’s tourism sector, especially places serving food and beverages, are set to get relief with the decision to decrease Value Added Tax (VAT).

The conservative New Democracy government of Greece decided to drop VAT from 24 to 13 per cent as part of a series of stimulus measures aimed at helping businesses.

VAT for hotels may also be cut from 13 to 6 per cent in an effort to give them a boost.

Insurance contributions will be reduced by 0.90 per cent as of 1 June. The reduction is expected to lead to salary increases of 2.7-27 euros per month.

Ticket prices on ferries, airlines, KTEL buses and public transport will also apply from today.

As Greece slowly opens up its economy, there will also be new rules for businesses which need to meet strict hygiene protocols with limits to customers and tables kept further apart.

The government of Greek Prime Minister Kyriakos Mitsotakis also plans to use 32 billion euros in grants and loans from the EU for large-scale investments in the green economy, digitalisation and modernisation of public administration.

 

Source Credit – Neokomos

 

GREECE– Update 27th May

Greece to cut VAT on coffee, soft drinks as part of stimulus package

As the Greek government is preparing to re-open the country’s tourism industry to foreign visitors, Prime Minister Kyriakos Mitsotakis has unveiled a number of measures to revive Greece’s economy, including a cut in the value-added tax (VAT) on coffee and non-alcoholic beverages served by local food caterers.

 

Source Credit – IEG Policy

 

GREECE– Update 25th May

Temporary VAT rate decreases for transport, coffee, non-alcoholic beverages, etc

The Greek Ministry of Finance has issued a release on its four-phase plan for supporting and reopening the economy in light of the COVID-19. The key points of the release concern the third phase, which is to begin implementation next week. These are summarized as follows: 

  • Continued support will be given for employment in relation to employment suspension and insurance contribution coverage, as well as other new supports for employment;
  • Further support will be provided for the suspension of the payment of certified tax debts for the month of June for businesses that remain closed and businesses in tourism, catering, transport, culture, and sports sectors;
  • The 40% rent reduction for affected businesses is extended for June, and is further provided for the tourism, catering, transport, culture, and sports sectors for the months of July and August;
  • Relief for property owners that rent property to affected businesses is also extended, including suspension of tax payment;
  • The Ministry will provide a reduction in advance tax payments for 2020 and 2021 for companies that have shown a decrease in turnover in March, April, and May 2020, with the reduction based on the percentage reduction in turnover;
  • A number of VAT rate reductions are provided, which include that the rate on the following supplies is reduced from 24% to 13% from 1 June to 31 October 2020:
    • Passenger transport, which covers transport by train, metro, and tram, by city and intercity buses, by plane, by ship, and by combined transport;
    • Coffee and non-alcoholic beverages; and
    • Cinema tickets;
  • The VAT rate on tourist packages is also reduced from 80/20 (80% at 13% and 20% at 24%) to 90/10 from 1 June to 31 October 2020; and
  • The 30% tax deduction for R&D expenditure will be increased to 100% for expenses incurred from 1 September 2020.

 Although not clear from the release, the R&D deduction is assumed to refer to the 30% super deduction, i.e., a 130% deduction for qualifying expenditure, meaning a 200% deduction will be provided.

 

Source Credit – Orbitax

 

GREECE– Update 19th May

VAT reductions on coffee, tea, soft drinks and tickets (proposal)

The Greek government is preparing to bring a new package of measures to support all those affected by the pandemic within the next week. This includes measures to support sectors such as tourism , catering and transportation.

 

Source Credit – trikalaidees.gr

 

GREECE– Update 14th May

Greece Clarifies Application of 25% VAT Discount for Timely Payment

The Greek Public Revenue Authority (AADE) has clarified the application of a 25% discount of VAT liabilities for March and April 2020 if the liabilities are timely paid by the standard deadlines.

This includes that if the VAT liability for March has already been timely paid without taking advantage of the 25% discount, the resulting excess payment for March will be automatically carried forward to offset the April VAT liability, which may also be reduced for the 25% discount. The 25% discount is provided for qualifying taxpayers as a result of the COVID-19 pandemic.

 

Source Credit – Orbitax

GREECE– Update 13rd May

Greece Clarifies Application of 25% VAT Discount for Timely Payment

The Greek Public Revenue Authority (AADE) has clarified the application of a 25% discount of VAT liabilities for March and April 2020 if the liabilities are timely paid by the standard deadlines. This includes that if the VAT liability for March has already been timely paid without taking advantage of the 25% discount, the resulting excess payment for March will be automatically carried forward to offset the April VAT liability, which may also be reduced for the 25% discount. The 25% discount is provided for qualifying taxpayers as a result of the COVID-19 pandemic.

 

Source Credit – Orbitax

GREECE– Update 23rd April

E-invoicing delayed until June 2020

The first stage launch of Greek e-books and e-invoices has been pushed back until at least 1 June 2020.

Following a public consultation and pilot in the past six months, the Greek tax office has published a new launch schedule:

  • June 2020 – sales invoices;
  • October 2020 – purchase invoices not provided by domestic taxpayers above;
  • January 2021 – combined sales and purchase invoice reporting.

The current COVID-19 crisis has meant businesses have not been able to select the best format for submitting invoices, or appoint certified e-service bureaus to assist them.

 

Source Credit – Richard Asquith (Avalara)

GREECE– Update 23rd April

VAT Exemption on Imported Goods for COVID-19

The Greek Public Revenue Authority (AADE) has published Circular E. 2045 of 8 April 2020 concerning a customs duty and VAT exemption being provided on the import of personal protective equipment, respirators, disinfectants, and other medical goods and equipment to combat the COVID-19 pandemic. To qualify for the exemption, the goods must be made available free of charge to specified beneficiaries, including to the Greek State, public entities, local organizations, local government, and ecclesiastical entities, as well as charitable and for-profit entities supervised and controlled by such beneficiaries.

The exemption is effective with respect to qualifying imports from 30 January to 31 July 2020.

 

Source Credit – Orbitax

GREECE– Update 21st April

COVID-19: 6% VAT rate for products needed to protect against the virus (eg. hygienic masks, gloves, antiseptic solutions, etc.).

In order to mitigate the impact of Covid-19, the Greek Tax Authorities reduced the VAT rate from 24% to 6% for products needed to protect against the virus (eg. hygienic masks, gloves, antiseptic solutions, etc.).

This measure applies until 31 December 2020.

Since measures concerning Covid-19 are rapidly changing, this article is for information purposes only. Any companies intending to act upon this article should first contact us for specific advice concerning these elements.

 

Source Credit – VAT Systems

GREECE– Update 17th April

The Greek government has announced plans for a four-month VAT payment holiday regarding VAT return payments due on 30th March 2020.

 

Source Credit – Accordance VAT

GREECE– Update 16th April

Greece has given a four-month extension to pay VAT that falls due at the end of March in the most affected regions.

 

Source Credit – WTS Global

GREECE– Update 9th April

COVID-19: Extension of the deadline for payment of April VAT debts until 31.08.2020.

 

 

Source Credit – Deliotte

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