Greek Measures to address financial crisis emerged from COVID-19

Extension of VAT payment

Payment of VAT amounts is extended for the affected enterprises until 31 August 2020. This concerns amounts payable during the period from 11 March 2020 until 30 April 2020. To date, no extension to the submission deadlines of periodical VAT, VIES and Intrastat returns due within or by the end of March 2020 has been provided.

During the suspension period, no interest and surcharges shall be imposed on the amounts of taxes due.

The extension applies under the condition that the existing number of employees is retained by the affected enterprise. Otherwise, interest and surcharges shall be charged as of the date of their assessment.

Extension of payment of assessed tax debts and instalments of arrangements/ settlement schemes

Payment of assessed tax debts and instalments based on arrangements/settlement schemes is extended for the enterprises affected by COVID-19 as well as their employees. The same provision applies for landlords who lease their property to such businesses until 31 August 2020. This concerns amounts due in the period from 11 March 2020 until 30 April 2020. To date, no extension to the submission deadlines of periodical tax returns due by the end of March 2020 has been provided (e.g. business activity income or payroll withholding tax returns).

During the suspension period, no interest and surcharges shall be imposed on the amounts of taxes due.

The extension applies under the condition that the existing number of employees is retained by the affected enterprise; otherwise, interest and surcharges shall be imposed as of the date of their assessment.

Payment of social security contributions and instalments of arrangements/ settlement schemes

Payment of social security contributions and instalments of relevant arrangements is suspended for affected enterprises.

During the suspension period, no interest and surcharges shall be imposed on the amounts of social security contributions due.

Details of such measures and necessary implementation guidelines will be determined through the issuance of relevant Ministerial Decisions.

According to the announcement of the Ministry of Labor, payment of February social security contributions will be suspended for 3 months, provided that the existing number of employees is retained.

Acceleration of tax refunds of amounts not exceeding Euro 30,000 by the tax authorities

Immediate refund of amounts not exceeding Euro 30,000 pertaining to pending income tax audit cases for legal persons and legal entities or pending VAT audit cases for natural or legal persons and legal entities, subject to limitation period framework.

Pending cases are considered those for which no temporary tax assessment act has been issued as of the publication date of the Legislative Act (20 March 2020).

For the purposes of such refunds, sample audits may be performed as per the Code of Fiscal Procedures provisions.

Submission of tax returns [applicable to all Greek taxpayers]

The deadline for filing of the annual list of customers-suppliers for 2019 has been extended until 30 June 2020. The relevant amendments to respective suppliers’ discrepancies shall take place until 31 July 2020.

The deadline for filing lease contracts’ notifications through Taxisnet for contracts or amendments executed from 01 February 2020 until 30 April 2020 is extended until 30 June 2020. The same extension applies for declarations of short-term accommodation for the period between 01 February 2020 and 31 May 2020.

Reduction in VAT rates for sanitary and self-protection items

All sanitary and self-protection items such as medical masks and gloves (with code ΔΚ 3926 ΕΧ, ΔΚ 4015, ΕΧ 4818, ΕΧ 6307, ΔΚ ΕΧ 3401, ΕΧ 3402), soaps for medical use, antiseptics liquid and antiseptics liquid and antibacterial hand wipes (with code ΔΚ 3307 ΕΧ, ΔΚ ΕΧ 3401, ΔΚ ΕΧ 2828, ΔΚ ΕΧ 3402, ΔΚ ΕΧ 3808, ΕΧ 3824) and pure ethyl alcohol (ΔΚ ΕΧ 2207) are subject to reduced VAT rate of 6%.

Payment obligation exemption from 40% of rent for professional lease and lease of first residence

Following on the reduction to 60% of the rent due for the months of March and April, the calculation of VAT & stamp duty applied will be effected on the basis of the new rent amount.

Definition of affected enterprises

The affected enterprises which will take advantage of these measures are the businesses of private sector with registered main Operation Code Number (ΚΑΔ) until 30/03/2020 the one mentioned in the updated list published in the site of Ministry of Finance: https://www.minfin.gr/documents/20182/9976964/240320_%CE%94%CE%A4_%CE%9A%CE%91%CE%94_%CF%80%CE%BF%CF%85_%CF%80%CE%BB%CE%AE%CF%84%CF%84%CE%BF%CE%BD%CF%84%CE%B1%CE%B9+%CF%80%CE%B9%CE%BD%CE%B1%CE%BA%CE%B1%CF%82.pdf/a52de850-38fe-4b31-8b80-7551d4adc3fc.

The list covers a wide range of wholesalers, retails, service, tourist companies and others.

For more information please don’t hesitate to contact our team of experts at newsroom@taxexperts.gr

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