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11.1. VAT on the Supply of Goods by Non-Residents

The supply of goods by a non-resident is subject to VAT in Greece.

When a non-resident has an establishment in Greece, the establishment must register for and pay VAT. Non-residents are allowed to defer the payment of VAT on supplies made at import and instead pay the VAT through periodic returns, provided certain conditions are met. In order to apply the scheme, the annual value of supplies imported must be at least EUR 250 million, with a reduced threshold of EUR 100 million for the first five years.

Effective 1 January 2018, new transfer pricing adjustment rules have been introduced in relation to VAT. The new rules allow the tax authority to adjust the VAT base of transactions between related parties in cases where the price for a supply of goods or services is below the market (arm's length) price and either the supplier or the recipient does not have a full right to deduct input VAT.

When a non-resident has no establishment in Greece, they must register for VAT unless the supplies are subject to reverse charge or are distance sales and the threshold has not been met.

Tax Representative

If the non-resident with no establishment in Greece is resident in a non-EU country, they are required to appoint a tax representative in order to register for VAT. When the non-resident is a resident in an EU country, they can also appoint a tax representative but are generally not required to do so.

Reverse Charge

In general, when a supplier has no establishment in Greece, and the customer is a taxable person, the customer is required to account for the VAT payable on the supply and make payment.

The reverse charge does not apply for supplies of goods to non-registered individual consumers or when the goods are in Greece at the time of supply.

Distance Sales

Until 30 June 2021, non-resident suppliers making distance sales from another EU country were not required to register unless the sales exceed a threshold of EUR 35,000. Effective 1 July 2021, the distance sales threshold of EUR 35,000 is abolished and the destination principle for distance sales of goods applies instead. Thus, supplies are subject to VAT in the Member State of the recipient, regardless of the supplier’s distance sales volume.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Greece announced an exemption from VAT on the import of personal protective equipment, respirators, disinfectants, and other medical goods and equipment. To qualify for the exemption, the goods must be made available free of charge to specified beneficiaries, including to the Greek State, public entities, local organizations, local government, and ecclesiastical entities, as well as charitable and for-profit entities supervised and controlled by such beneficiaries. The exemption is effective with respect to qualifying imports from 30 January 2020 until 31 December 2021 (extended from 30 April 2021).