Value Added Tax (VAT)

The Value Added Tax is regulated by Law 2859/2000 VAT Code. VAT is an indirect tax of consumption.

Scope of the Tax

The following transactions shall be subject to VAT:

a) The supply of goods and services, where they are carried out for consideration within the country by a taxable person acting as such.

b) The importation of goods.

c) The intra-Community acquisition of goods for consideration within the territory of the country by a taxable person acting as such or by a non-taxable legal person, where the vendor is a taxable person established in another Member State, acting as such and who is not eligible for exemption from tax on the basis of the amount of annual turnover achieved, in accordance with the legislation of his country for small enterprises, nor subject to special provisions of the VAT Code.

The intra-Community acquisition of new means of transport is subject to tax, regardless of the status of the person established within the country.

d) The Intra-Community acquisition of goods subject to excise duty by a taxable person or a non-taxable legal person, provided that such persons are subject to specific provisions of the VAT Code.

VAT on the supply of immovable property

From 1.1.2006, a 24% Value Added Tax (VAT), rather than an immovable property Transfer Tax, applies to the following properties:

VAT is charged on the supply of completed or unfinished buildings or parts thereof and the land transferred with them as a single property or ideal shares of land to which the irrebuttable presumption of completion applies, provided that it is effected by a force majeure before the first installation in them.

For the application of VAT:

  • Buildings means buildings, in general, and structures of any kind attached to buildings or to the ground in a fixed and permanent manner.
  • First installation means the first use in any way of buildings after their construction, such as ownership, private use, lease or other use.

VAT is also charged:

  • In the transfer of bare ownership, the establishment or waiver of the right of personal or real servitude, the granting of the right of exclusive use of jointly owned main, auxiliary or special premises of buildings or of a jointly owned part of a plot of land, as well as the transfer of the right to exercise the usufruct of the above-described completed or unfinished real estate.
  • In the performance of work on real estate, by hiring out a project, regardless of whether the materials are available to the employer or the contractor. Work within the above meaning includes excavation, demolition, the construction of buildings, roads, bridges, aqueducts, plumbing and drainage works, electrical and mechanical installations and general engineering works, as well as additions, extensions, alterations and repairs, except for normal maintenance work on such works.

Specifically for cases of buildings construction for consideration, the construction contract of the taxable building constructor for sale to the owner of the immovable property shall not be subject to tax where the taxable building constructor has been subject to a tax suspension regime in accordance with paragraph 4A of Article 6 of VAT Code.

VAT is charged on the supply of immovable property of which:

  • The construction permit is issued from 01.01.2006 onwards.
  • The construction permit shall be reviewed from 01.01.2006 onwards, provided that no construction work has commenced by the date of review.
Exemption for First Home Residence

The supply of immovable property is exempt from VAT to beneficiaries of exemption from immovable property transfer tax on the acquisition of a first home, as well as the granting of the right of exclusive use of the above properties.

Suspension of VAT on immovable property until 31.12.2024

At the application of the taxable person, a constructor of buildings for sale, the VAT charge on immovable property [1] is suspended until 31.12.2024 and immovable property transfer tax is applied. The suspension applies to all of the above undistributed properties of the taxable person. The taxable person shall submit, together with the application, a statement of the undistributed properties and the amount of tax corresponding to each of them to be settled.

[1] On property under paragraphs 1 and 2a of Article 6 of the VAT Code

Taxable Persons

The following are subject to the tax:

a) Any natural or legal person, domestic or foreign, or association of persons, if it carries out an independent economic activity.

b) Any person who occasionally supplies a new means of transport which is dispatched or transported to another Member State.

c) Any person, who carries out on an occasional basis supplies of immovable properties (Article 6 of the VAT Code), provided that he/she is subject to the normal VAT regime with his/her declaration.

d) A joint venture which constructs immovable property under the system of consideration, and a society which constructs immovable property on a land or parts of land belonging to its members, for supplies and self-supplies made by its members. The terms and conditions are set out in detail in Articles 6 and 7 of the VAT Code.

VAT Exemptions

Indicatively, the following transactions are exempt from tax:

  • The provision of hospital and medical care and diagnostic services, as well as closely related supplies of goods and services, carried out by public bodies or other bodies under certain conditions.
  • The supply of medical care provided in the exercise of a medical profession and the supply of services by psychologists, midwives, nurses, physiotherapists, speech therapists and occupational therapists.
  • The provision of services by dental technicians and the supply of dental prostheses by dentists and dental technicians.
  • the supply of services and of goods closely linked to welfare and to social protection, protection of children and young people, supplied by public law or by other bodies recognised by the Member State,
  • The provision of education services supplied by bodies governed by public law or other organizations recognized by the member state and the delivery of special courses at all levels of education.
  • The provision of services closely related to sport or physical education, by non-profit legal entities to persons engaged in sport or physical education.
  • Insurance and reinsurance operations.
  • Financial services.
  • Immovable property
  • State lotteries and games of chance and betting.
  • The delivery of immovable property, subject to certain exceptions.
  • The supply of goods whose importation is exempt from value added tax.
  • Intra-Community supplies and exports of goods.
  • International transport.
  • The delivery and importation of specific types of ships and aircraft.
VAT Rates
Normal Rate

The Normal Rate of VAT is twenty-four percent (24%).

Reduced Rate of 13%

For certain goods and services included in Annex III of the VAT Code, the reduced rate of thirteen percent (13%) applies.

Indicative examples are:

Food, Non-alcoholic Beverages, Waters, Catering, Hotels, Transport, Theatre tickets (except those subject to the reduced rate of 6%), Medical supplies, supplies used mainly or exclusively for agriculture, animal husbandry or forestry (such as agricultural and forestry tractors, agricultural machines, devices and tools, liquid pumps, mobile silos, etc.)

Reduced Rate of 6%

For goods and services for which there is a special provision in Annex III of the VAT Code, the reduced rate of six percent (6%) applies as well as the newly introduced reduced rate of four percent (4%) on a case-by-case basis.
Indicative examples are:

Medicines, Books, Electricity and Natural Gas, Theatre and concert tickets, cinema tickets, Masks, gloves, soaps, antiseptics.

Specifically for dialysis, haemofiltration, haemodialysis and plasmapheresis filters and dialysis, haemofiltration, haemodialysis and plasmapheresis lines, the tax rate is set at six percent (6%).

Additionally, in the provision of services based on contracts for works intended exclusively for the overcoming or removal of architectural obstacles that limit the mobility of disabled persons, in public or private buildings or buildings that serve the public interest, the rate is set at four percent (4%).

Reduction in VAT Rates by 30%

For taxable supplies of goods and intra-community acquisitions of them and the services that are materially supplied on the Aegean islands of Leros, Lesvos, Kos, Samos and Chios, as well as for the supplies of goods from the rest of Greece to these islands, the VAT rates are reduced by 30% and are respectively 17%, 9% and 4% or 3% as the case may be.

VAT Rate 0%

**As an exception, for the vaccines of Heading 3002 against COVID-19 coronavirus, which have been approved by the European Commission or by the member states of the European Union, the value added tax (VAT) rate is set at zero percent (0%).

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