Tax rate by region Greece

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Understanding VAT in Greece: A Guide for SaaS Businesse

Greece adopted the EU VAT system in 1987, aligning its tax framework with European standards. As part of this system, businesses are required to charge and collect VAT on the supply of goods and services, including those delivered electronically, such as SaaS. The standard VAT rate in Greece is 24%, applicable to most digital services. However, some categories of products or services may be subject to a reduced rate of 13%, such as e-learning services provided by public institutions for pre-school, school, or university levels. For businesses exceeding the annual turnover threshold of €30,000, quarterly VAT filings are required by the 20th day of the month following the reporting period. Maintaining relevant records, including invoices and receipts, is essential for at least ten years for VAT purposes.

Greece

Greece adopted the EU VAT system in 1987, aligning its tax framework with European standards.

Official government link: Independent Authority for Public Revenue

24.00%

E-products and services VAT/Sales tax rate

13.00%

Reduced tax rate

Reduced tax rate product categories

E-learning services have rate reduced to 9% if related to pre-school, school or universities

Exempted product categories

E-learning services are exempt if related to pre-school, school or universities if provided by a public institution

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies have to register as soon as goods are being delivered or services are being provided

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

You can register for MOSS through the Greek Tax Authorities’ TaxisNet portal. For non-EU businesses (non-Union scheme), the following information is required:

Company name and contact details
Tax number in the country of registration
Bank details
An electronic declaration confirming the business is not registered to pay VAT within the EU
The start date for using MOSS

List of digital and electronic services liable for tax

Electronic books, images, movies, and videos, whether purchased from platforms like Shopify or accessed through services such as Amazon Prime, are increasingly categorized as “Audio, visual, or audiovisual products.” This category also includes downloadable and streaming music, whether buying an MP3 or using music services. Additionally, it covers cloud-based software and as-a-Service products (SaaS, PaaS, IaaS), websites, site hosting services, internet service providers, online ads, and affiliate marketing.

Penalties

Late Filing Penalties:
A penalty of €100 is imposed for late submission of VAT returns. If the return is more than 30 days late, the penalty increases to €250.
Incorrect Returns:
For misdeclared VAT, penalties can reach up to 50% of the tax liability, depending on the severity of the misdeclaration.
Late Payment Penalties:
Interest on late payments is charged at a rate of 0.73% per month on the outstanding VAT amount.
Failure to Register:
Failure to register for VAT can lead to penalties that vary based on the circumstances, including potential fines and back taxes owed.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Quarterly

Filing deadline

By the 20th day of the month following the reporting period

E-invoicing requirements

Not yet mandatory

Record keeping

Relevant records must be kept for at least 10 years

Effortless Subscription Management and Billing

Greece VAT for SaaS Businesses: Registration Thresholds & E-invoicing

Businesses must register for VAT if their taxable turnover exceeds the threshold. However, non-established businesses exceeding the threshold of the distance selling scheme or businesses providing electronically supplied services exceeding the EU threshold must register for VAT in Greece, even if their domestic turnover is below the threshold. For non-established businesses, the threshold is €10,000, and for electronically supplied services, it’s €35,000. Businesses below these thresholds can choose to register voluntarily. Regarding e-invoicing, while not yet mandatory in Greece, it is highly recommended for businesses to adopt this method for efficiency and security.

Managing SaaS VAT in Greece: Proactive Strategies for Success

To effectively manage SaaS VAT in Greece, it’s crucial to stay informed about the latest regulations and seek guidance from experienced tax professionals. Consulting with qualified advisors can help businesses navigate the complexities of VAT compliance, ensuring accurate reporting and timely payment of obligations. Additionally, adopting automated tools for VAT calculations and e-invoicing can streamline processes and minimize the risk of errors. By proactively managing their VAT responsibilities, businesses can operate with greater confidence and focus on growth opportunities.

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