VAT in Greece 2026: A Practical Guide for Freelancers and Small Businesses

1. What VAT means in practice

Value Added Tax is a tax on consumption. When a business in the standard VAT regime issues an invoice for a taxable supply, it adds the applicable VAT to the net price and collects that amount from the customer. It then offsets, where the law permits, VAT paid on its own business purchases and pays the difference to the tax authority.

This is why VAT received into a bank account should not be treated as profit or available cash. Business revenue is normally the net value. Output VAT comes with a tax liability unless it is lawfully offset by deductible input VAT.

2. When does a professional charge Greek VAT?

Greek VAT generally applies to supplies of goods and services made for consideration in Greece by a taxable person acting in that capacity. Imports and intra-Community acquisitions are also taxable under their own rules.

Not every transaction has the same treatment. A supply may be taxable, exempt under a specific provision, or outside the scope of Greek VAT because its place of taxation is elsewhere. An exemption can depend on the specific activity, supplier, customer and factual conditions rather than merely on a professional title.

The VAT Code includes, for example, exemptions for certain healthcare, education, insurance and financial services, subject to detailed conditions. A professional providing more than one type of service may therefore need a transaction-by-transaction analysis.

3. Greek VAT rates in 2026

This is not a complete classification. The correct rate must be checked against Annex III of the Greek VAT Code and current AADE guidance. A product label in an invoicing application cannot override the real nature of the supply.

4. How the standard VAT regime works

Output VAT is the VAT due on taxable sales. Input VAT is VAT on purchases and expenses for which the business has a right of deduction. If output VAT is higher, the return is payable. If deductible input VAT is higher, a VAT credit arises.

Simple example

A consultant issues an invoice for €1,000 plus 24% VAT. The customer owes €1,240 and output VAT is €240. In the same period the consultant buys qualifying business equipment for €500 plus €120 VAT.

If deductible purchase VAT were €300, a €60 credit would arise. This assumes a valid invoice, a link to taxable business activity and no statutory restriction on deduction.

5. Domestic special scheme for small enterprises

The current domestic scheme is governed by Article 44a of Law 5144/2024. It is optional and may be used by a business established in Greece if its annual domestic turnover did not exceed €10,000 in both the current and the previous calendar year.

The scheme can be selected when the business starts. An existing business may also apply during operation if it meets the conditions, following Decision A.1011/2026. The exemption applies from the approval date and should not be used retrospectively for earlier invoices.

• No VAT is charged on covered domestic supplies.
• Periodic VAT returns are generally not filed.
• VAT on purchases and expenses connected with exempt supplies cannot be deducted.
• Invoices state: “No Value Added Tax – Small-enterprise exemption” (the required Greek wording is “Χωρίς Φόρο Προστιθέμενης Αξίας – Απαλλαγή μικρών επιχειρήσεων”).
• Special obligations may still arise for intra-Community acquisitions, received services and reverse-charge transactions.

Threshold example

A business has domestic turnover of €9,700 and issues a new invoice for €800. That transaction takes turnover to €10,500. The exemption ends from the entire €800 transaction, not merely the €500 above the threshold. The invoice bears the applicable VAT and the mandatory change-of-status declaration is filed within 30 days of the threshold-breaking transaction.

6. Cross-border SME scheme from 1 January 2025

The cross-border scheme is separate from Greece’s domestic €10,000 exemption. It allows an eligible business established in one EU Member State to use a small-business VAT exemption in one or more other Member States.

• Total annual turnover across the EU must not exceed €100,000 in either the current or the previous calendar year.
• The business must also remain within the national or sectoral threshold of each Member State where exemption is requested.
• A prior notification is filed through AADE’s application. The exemption starts only after access is granted and a VAT identification number with the “-EX” suffix is issued.
• A quarterly report covering turnover in every Member State is filed with AADE by the last day of the following month. The deadline does not move merely because that day is a weekend or public holiday.
• If EU turnover exceeds €100,000, a final excess report is due within 15 working days.

The domestic and cross-border schemes operate independently. A business may remain in the standard regime in Greece while using the cross-border SME scheme in another Member State, provided the local conditions are met. The SME scheme may coexist with Union OSS for Member States where the exemption is not used, but not for the same jurisdiction. It is incompatible with an active IOSS registration.

7. Monthly and quarterly VAT returns

The old shortcut that “single-entry books file quarterly” is no longer accurate. Decision A.1049/2025 introduced monthly periods for specified business start dates and allows a later election where the timing conditions are met.

The election is made in myAADE under Registry and Communication / Change of registry details and only during the periods specified in the decision. It cannot be revoked until 12 months have passed from its effective date. Businesses in the domestic SME scheme do not file ordinary periodic returns, but an extraordinary return may still be required for a specific transaction.

8. Customers in Greece, the EU and non-EU countries

The table below is aimed mainly at ordinary consultancy, development, design and creator services. It is a starting point, not an automatic result for every service.

The general B2B rule is not absolute. Services connected with immovable property, events, transport, catering, short-term vehicle hire, telecommunications, broadcasting and electronically supplied services follow special place-of-supply rules. Before invoicing, confirm the customer’s status, actual establishment and the precise nature of the service.

9. Buying services from abroad

Google Ads, Meta Ads, Microsoft, Adobe, hosting, SaaS, professional platforms and Booking or marketplace commissions are common foreign service purchases. For VAT purposes they are not simply “online purchases”.

If the place of supply for a B2B service is Greece and the foreign supplier does not charge Greek VAT, the Greek customer may have to account for VAT under the reverse charge. When the supplier is in another Member State, intra-Community registration should normally be active before the transaction, the VAT numbers should be correct and a VIES recapitulative statement may be required.

A business using the €10,000 domestic exemption is not outside every VAT obligation. It may need an extraordinary VAT return and payment for received services or an intra-Community acquisition. Because its domestic exempt supplies do not create a right of deduction, VAT self-accounted under reverse charge is not automatically recoverable as input VAT.

10. Which expenses allow input VAT deduction?

Two different tests must always be kept separate:

1. Income-tax business expense: the net amount may reduce taxable profit if the Greek Income Tax Code conditions are met.
2. Input VAT deduction: VAT may be offset against output VAT only where the VAT Code provides a right of deduction.

An expense may be recognised for income tax while its VAT remains non-deductible. Article 35 links deduction to use for taxable supplies and expressly excludes certain categories.

For a fuller distinction between the net expense and VAT restrictions, see our guide to tax-deductible expenses for sole proprietors in Greece.

11. Home office: no arbitrary percentage

There is no general rule that 30% or one third of household costs is deductible. Allocation must reflect actual business use. Depending on the cost, relevant factors may include the floor area used for work, time of use, number of users, exclusivity and how the service supports the business.

The method should be consistent, documented and supported by an appropriate invoice. Recognition of part of an electricity or internet bill for income tax does not automatically mean that all or the same proportion of VAT is deductible. The treatment depends on the facts, VAT status and nature of each bill and should be agreed with the accountant.

12. VAT credits and refunds

When deductible input VAT exceeds output VAT, the credit is normally carried forward and offset against VAT in later periods. A credit shown on a VAT return does not mean that cash is automatically paid into the business bank account.

A refund may be requested in the cases allowed by the VAT Code, such as inability to offset, supplies carrying a deduction right without Greek output VAT, rate differences or investment expenditure, depending on the facts. A request may be assessed or audited and requires reconciled accounting records and supporting evidence.

13. myDATA and the VAT return

Revenue and expense data are transmitted to myDATA and used to prefill tax returns. The business and its accountant still need to reconcile the source invoices, accounting records, myDATA entries and VAT return. Credit notes, cancellations, discrepancies and incorrect classifications should be corrected promptly.

Transmission alone does not determine whether a supply carries 24%, is exempt, falls under reverse charge or gives a deduction right. For the distinction between issuing an invoice, transmitting it and assigning the correct tax classification, read our practical myDATA guide for freelancers in Greece.

14. Common VAT mistakes

• Treating VAT collected from customers as business profit.
• Confusing an income-tax expense with deductible input VAT.
• Testing the €10,000 threshold only against the previous year.
• Identifying the threshold-breaking transaction too late.
• Failing to activate intra-Community transactions before the first supply or purchase.
• Not validating the customer’s VAT number in VIES and retaining the result.
• Charging Greek VAT where reverse charge applies.
• Missing an extraordinary VAT return while using the domestic SME exemption.
• Deducting VAT on a passenger car, fuel or hospitality without checking Article 35.
• Using an arbitrary home-office percentage.
• Failing to reconcile invoices, books, myDATA and the VAT return.

15. Checklist before every invoice

If the activity is just starting, VAT status, VIES and invoicing should be arranged before the first invoice. See our guide to starting a sole proprietorship in Greece. The comparison of a sole proprietorship and an IKE helps with the wider legal-form decision, while service providers with a small number of clients may also find the guide to working with a “blockaki” in Greece useful.

Frequently asked questions

Official sources

• AADE — Greek VAT Code, Law 5144/2024, as amended
• AADE — SME special scheme FAQ, 30 December 2025
• AADE — Cross-border SME scheme
• AADE — Decision A.1010/2026
• AADE — Decision A.1011/2026
• AADE — Decision A.1049/2025 on monthly and quarterly returns
• AADE — Basic VAT rates
• Greek Ministry of Economy and Finance — Value Added Tax
• European Commission — SME VAT Scheme
• European Commission — VAT special schemes
• European Commission — VIES VAT number validation
• Gov.gr — Entitlement to a VAT refund
• AADE — myDATA