VAT in Greece: Rates 2025 and How it Works

All the details on VAT in Greece

VAT affects nearly every business transaction and is a crucial source of government revenue.

The standard rate is 24%, which applies to most products and services. However, reduced rates apply to specific categories, such as food, pharmaceuticals and cultural services.

• 24% – standard rate
• 13% – reduced rate for food, water, hotel services, etc.
• 6% – reduced rate for books, medicines, theater tickets, etc.

Special rates apply to certain Aegean islands, which benefit from lower rates as part of regional economic support. (e.g., 17%, 9%, and 4%), but only under certain conditions.

In Greece, VAT registration is mandatory for most businesses that engage in taxable economic activities. The registration process assigns your company a unique VAT number, which is used for invoicing, tax reporting, and intra-EU transactions.

Unlike many EU countries, Greece does not have a minimum turnover threshold for VAT registration. This means that any business (sole proprietorship, partnership, or corporation) established in Greece that supplies goods or services subject to VAT must register before starting operations, including the smallest businesses.

However, you are not required to register if you only provide services or sell goods exempt from VAT under Greek law, such as education, healthcare, or insurance, or if you are a small farmer operating under a simplified flat-rate compensation scheme.

How to Register a VAT Number in Greece

Before registering for a VAT number, your business must be legally formed in Greece or abroad. This includes choosing a legal entity, registering with the General Commercial Registry (GEMI), and obtaining a tax identification number (AFM) from the Greek Tax Office (ΔΟΥ).

Once you have gathered the articles of incorporation, GEMI registration, and the tax number, submit all the required documents and the VAT registration request to the relevant local tax office. Fill out the appropriate forms.

If your documents are in order, the tax office will issue a VAT number.

The VAT number begins with “EL” followed by nine digits and is associated with your company in the TaxisNet system.

Depending on your business’s turnover and type, you will also be assigned a specific VAT reporting obligation (monthly or quarterly).

After receiving your VAT number, you must register with TaxisNet to file VAT returns (Form F2), view your VAT account, and access MyDATA for digital reporting. Typically, an accountant handles this on your behalf.

Is It Compulsory to Have a VAT Number in Greece?

Having a VAT number is compulsory for businesses that engage in taxable economic activities, such as selling goods or providing services. Failing to comply with VAT obligations can lead to serious administrative, financial, and even criminal consequences.

Administrative fines for VAT noncompliance are a key enforcement tool used by the tax authorities to ensure businesses fulfill their tax obligations. These fines can be substantial, even for minor infractions, and are outlined in the Greek Tax Procedure Code (Law 4174/2013). The fines are designed to penalize noncompliance and deter repeat offenses, as well as encourage accurate reporting through systems like TaxisNet and MyDATA.

For example, if a company fails to register for VAT when required, the Greek tax office may impose a fine of up to €2,500. This applies regardless of whether the company is Greek or foreign and whether the failure was intentional or due to ignorance. The authorities may also retroactively assess VAT that should have been declared and paid from the date the taxable activity began.

Late filing of VAT returns, a common issue, typically results in fines ranging from €100 to €500 per return depending on the business’s size and structure. Repeated delays or omissions can trigger more intense scrutiny, including audits. Submitting incomplete or inaccurate VAT returns also subjects a business to additional penalties, especially if the discrepancies are significant or appear deliberate.

Businesses that fail to submit MyDATA data correctly and on time face fines ranging from €250 to €10,000, depending on their size and the duration of noncompliance.

Administrative fines penalize and correct procedural failures, while criminal charges come into play when there is intent to deceive the state or systematically avoid tax obligations, including VAT fraud.

One of the most serious violations occurs when a business collects VAT from customers but intentionally fails to remit it to the state. This is considered misappropriation of public funds and can lead to criminal prosecution. Similarly, issuing false invoices, using non-existent transactions to claim VAT deductions, or manipulating books to hide taxable income are all treated as fraud and classified as criminal offenses.

Penalties depend on the amount of VAT evaded and the nature of the fraud.

Legal obligations of having a VAT number

In Greece, having a VAT number carries a series of legal obligations that extend beyond merely charging VAT on sales. Having a VAT number signifies that a business is part of the formal tax system and is legally responsible for collecting, reporting, and remitting VAT to the Greek state. These obligations are primarily set out in the Greek VAT Code (Law 2859/2000) and the Tax Procedure Code (Law 4174/2013) and are reinforced by EU VAT rules given Greece’s membership in the European Union.

Once a business registers for VAT, it is legally required to issue compliant invoices for every taxable transaction. These invoices must include specific details, such as the VAT numbers of the issuer and recipient, the VAT rate applied, and the total VAT amount charged.

Invoices must be recorded accurately and kept for at least five years.

Another core obligation is the timely submission of VAT returns. Depending on the company’s turnover and activity, this may be done monthly or quarterly through the TaxisNet system. Businesses must calculate the difference between output VAT (charged on sales) and input VAT (paid on purchases) and remit the balance to the state or claim a refund if input VAT exceeds output.

Additionally, businesses with a VAT number must comply with Greece’s digital accounting rules through the MyDATA platform, which requires the electronic submission of sales, expense, and invoice data.

Finally, businesses with a VAT number are subject to audit and investigation by the Greek tax authorities. Maintaining transparent records, complying with deadlines, and keeping a clear audit trail is essential for demonstrating compliance and good faith in the event of a dispute.