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11.2. VAT on the Supply of Services by Non-Residents

The supply of services 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.

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.

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 services to non-registered individual consumers. . In such a case a non-resident providing electronic services to non-taxable persons (B2C) is liable to VAT, and the non-resident company is required to register for VAT. However, effective 1 July 2021, with the use of One Stop Shop system (OSS), such registration requirements can be avoided. The OSS covers, inter alia, all services and not only telecommunication, broadcasting and electronic services. Under the OSS, an opportunity is given to the taxpayer to register in one EU Member State (referred to as the Member State of Identification) and report all sales to customers across the EU in a single, consolidated VAT return.