On 1st May 2019, the following amendments to the Greek VAT Code, were published in the Official Gazette:
The main change, effective as of 1st January 2019: relates to the implementation of the EU Vouchers Directive (Council Directive (EU) 2016/1065), which all EU Member States are required to transpose into their national law for the start of 2019. This directive brings into effect EU-wide rules for the harmonised VAT treatment of vouchers. The new rules provide definitions for different types of vouchers and determine the tax point and tax base for the separate voucher types. The VAT treatment of a transaction depends on the nature of the voucher: a “single-purpose” voucher is taxed at the point of sale, whereas a “multi-purpose voucher” is taxed at the time of redemption. For more information, please read our story on the new EU voucher rules.
In addition, further to the European Commission launching infringement proceedings against it last year, Greece has amended its VAT treatment of short-term pleasure yacht leasing. Under the revised rules, no Greek VAT is due on the part of the lease that is used outside the European Union. Greece’s previous position allowed for a reduced VAT base on yacht leasing. This change comes into effect as of 1st May 2019.
Businesses involved with vouchers are reminded that because the voucher rules have changed in all EU countries, it is important that they review these changes so they can understand how they are affected by them. It is possible they may find that their cash flow or their right to input VAT recovery is negatively impacted.
If you would like more advice on how these developments impact your business, please do get in touch with us to discuss how we can help you.