This content is from: Greece

Greece: Import VAT payment deferral in Greece

On March 7 2013, Greek Law 4132/2013 introduced a special regime for suspension of the requirement to pay VAT upon importation of non-excisable goods by foreign taxable persons having a VAT registration number in Greece. This applies to the extent that such goods are mainly used for exports to third countries or intra-EU deliveries to EU countries. Practically this introduces a deferral of payment of import VAT; while import VAT shall be assessed on the customs documents upon importation, the importer will account for this VAT on their periodic VAT return.

To take advantage of this regime, a foreign taxable person intending to act as importer of record in Greece should apply in advance to the Greek Ministry of Finance to obtain a state license. The license shall be granted providing the following conditions are cumulatively met:

  • The prospective importer is a taxable person, who has a VAT registration in Greece, but is not established for VAT or corporate tax purposes locally.
  • The goods are not subject to excise taxes.
  • The prospective importer will import goods of a statistical value exceeding €300 million ($387 million) on an annual basis. For the first five years of application of the import VAT payment suspension regime, the respective threshold has been set to €120 million. If the prospective importer is a member of a group of companies, the above annual threshold must be exceeded either on a company level or on a group consolidated level.
  • The amount of VAT, payment of which has been suspended, is reported on the importer's periodic VAT return filed locally in Greece.
  • Goods reflecting 90% or more of the value of the goods imported annually are used to carry out either intra-EU deliveries or exports. If the prospective importer is a member of a group of companies, this annual threshold can be exceeded either on a company level or on a group consolidated level.

The above law is already effective since March 7 2013, but administrative guidelines are expected in May 2013, to apply this in practice (that is apply, and obtain the license).

Manos N Tountas (manos.n.tountas@gr.ey.com)
Ernst & Young
Tel: +30 210 2886 387
Website: www.ey.com

The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.

© 2019 Euromoney Institutional Investor PLC. For help please see our FAQ.

Instant access to all of our content. Membership Options | One Week Trial

Related