New VAT payment and refund Scheme

The Circulars 1212/09-26-2014 and 1214/09-30-2014, released by the General Secretariat of Public Revenues, have modified the procedures for VAT payment and refund respectively.

More specifically, according to POL 1212/09-26-2014, the refund claims, submitted by subjected to VAT entities for transactions exempted or transactions taxed abroad, will be cleared as priority and without auditing. Companies to be included in the list shall meet all the following prerequisites.
A. Over the last 4 fiscal years:

– Have been audited for at least three fiscal years and the difference between the amount claimed and the amount refund is lower than 5%.
– Not have committed tax offenses of par. 1 and 2 of Articles 54 and 55 respectively of L. 4174/2013.
– Have submitted EC Listing, VAT, Income Tax and Withholding Tax returns within the deadlines.


B. Have settled any overdue liability at the time of the refund claim assessment.
The General Secretariat of Public Revenues is going to draw up a list of firms that qualify direct VAT refund each January. However, if it is established that the criteria cease to be met a delisting will take place. It is also mentioned that the tax audit will be carried out randomly, covering at least 10% of total cases.
Regarding the application of the voluntary scheme for VAT payment at the time of collection (Circular 1214/09-30-2014), the following key points should be noted:

– For the inclusion in the special VAT payment scheme, the turnover of the subject to VAT entity shall not exceed 500,000 € in the previous and current financial period.

– The submission of a declaration via TaxisNet is required, according to the form presented in Annex I of Circular 1214/2014. Exceptionally for year 2014, declarations may be submitted until October 20th, with effect from October 1st.

– Taxpayers who desire to join the special VAT scheme should:
o Keep records of revenue collections and payments.
o Indicate on the invoices issued the phrase: “Special VAT scheme for tax payment at the time of collection – Article 226.7.a. Directive 2006/112 / EC – Article 39b of VAT Code”.
o Inform the competent Tax Administration on collections / payments made, via the submission of invoices statements, in accordance with the par. 3 and 4 of art. 14 of L.4174/2013.

– Taxpayers who come within the ordinary VAT framework shall also keep a record of payments, if they receive invoices from companies subject to the special VAT scheme.

– A taxpayer may walk out the special VAT scheme submitting a declaration electronically if:

o The annual turnover exceeds 500,000€.
o The Tax Authorities determine that the taxpayer no longer complies with the prerequisites.
o The taxpayer no longer desires to be subject to special VAT scheme.

It is noted that after the walking out, the taxpayer shall pay the corresponding tax for all invoicespending.
The above analyzed circulars are expected to improve the liquidity of the companies incorporated in Greece, especially at a time when access to bank credit i

s difficult and expensive. Consequently, entrepreneurs should take into account the latest changes in VAT scheme and consider the opportunity to join a special status.

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