How can an undertaking be registered for VAT purposes by submitting a VAT return for each tax period?

In the case of a natural person who intends to carry out a business activity which results in an obligation to register for VAT purposes by submitting a VAT return for each tax period, then the registration for VAT purposes shall be made by submitting form M2 ‘Statement of Commencement/Change of Operations of a Natural Person’ to the tax office, in accordance with Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force.

If the obligation to register for VAT purposes arises at the commencement of operations, then the form will be submitted by filling in the field ‘Commencement’, whereas if it arises at a later point in time, the form will be submitted by filling in the field ‘Change’.

For purposes of better understanding, the following example is provided, showing Table b4 of form M2 filled in by a sole proprietorship which is included in the regular VAT regime.

β4	b4
Φ.Π.Α.	VAT
ΠΑΓΩΓΗ Φ.Π.Α.	SUBJECTION TO VAT
ΟΧΙ	NO
ΝΑΙ	YES
ΚΑΘΕΣΤΩΣ Φ.Π.Α.	VAT REGIME
Απαλλασσομένων	Exempted
Αγροτών	Farmers
Τεκμαρτό	Imputed
Κανονικό	Regular
Καπνοβ/κών	Tobacco industry
Πρακτ. Ταξ.	Travel agency
Αρθρ. 36Α	Article 36A
Αρθρ. 36Β	Article 36B
ΤΡΟΠΟΣ ΕΝΤΑΞΗΣ	METHOD OF INCLUSION
Υποχρεωτικά	Mandatory
Προαιρετικά	Optional

Please note that if inclusion in the regular regime is optional, the word ‘Optional’ will be crossed out.

The following are also clarified:

In the case of an undertaking carrying out transactions under the special regime for travel agents referred to in Article 43 of the VAT Code, the words ‘Travel agency’ will be crossed out.
In the case of an undertaking carrying out transactions under the special tax regime for taxable resellers supplying second-hand goods, works of art, collectors’ items or antiques referred to in Article 45 of the VAT Code, the words ‘Article 36A’ will be crossed out.
In the case of an undertaking carrying out transactions under the special tax regime for sales by auction referred to in Article 46 of the VAT Code, the words ‘Article 36B’ will be crossed out.

Of course, more than one indication of the ‘VAT regime’ ‘sub-table’ may be crossed out, where applicable. For example, a sole proprietorship operating as a travel agency, which also provides passenger transport services by means of transport operated by the sole proprietorship, will cross-out both the ‘Regular’ and ‘Travel agency’ indications.

Finally, it is clarified that legal persons or legal entities implement the above, mutatis mutandis, by submitting form M3 ‘Statement of Commencement/Change of Operations of a Non-Natural Person’ to the Tax Office in accordance with Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force, or at the One-Stop-Shops in accordance with the provisions of Joint Ministerial Decision No 63577/13-06-2018 (Government Gazette, Series II, No 2380 and No 2681), as appropriate and where necessary.

Of course, during the above registration for VAT purposes Table b5 ‘Intra-Community transactions’ should also – in any case – be filled in with the appropriate indications.

How can a business register for VAT purposes by being included in the special flat-rate tax payment regime?

In the case of a natural person who intends to carry out an activity that may be subject to the special flat-rate tax payment regime referred to in Article 40 of the VAT Code, then the registration for VAT purposes may be made by submitting form M2 ‘Statement of Commencement/Change of Operations of a Natural Person’ to the Tax Office, in accordance with the provisions of Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force.

If the registration for VAT purposes occurs at the commencement of operations, the form will then be submitted by filling in the indication ‘Commencement’, whereas if it occurs at a later point in time, the form will be submitted by filling in the indication ‘Change’.

For purposes of better understanding, the following example is provided, showing Table b4 of form M2 filled in by a sole proprietorship included in the special flat-rate tax payment regime:

β4	b4
Φ.Π.Α.	VAT
ΠΑΓΩΓΗ Φ.Π.Α.	SUBJECTION TO VAT
ΟΧΙ	NO
ΝΑΙ	YES
ΚΑΘΕΣΤΩΣ Φ.Π.Α.	VAT REGIME
Απαλλασσομένων	Exempted
Αγροτών	Farmers
Τεκμαρτό	Imputed
Κανονικό	Regular
Καπνοβ/κών	Tobacco industry
Πρακτ. Ταξ.	Travel agency
Αρθρ. 36Α	Article 36A
Αρθρ. 36Β	Article 36B
ΤΡΟΠΟΣ ΕΝΤΑΞΗΣ	METHOD OF INCLUSION
Υποχρεωτικά	Mandatory
Προαιρετικά	Optional

Please note that, since the application of the special regime is not compulsory but is made on an optional basis, the indication ‘Optional’ will be crossed out.

Finally, it is clarified that societies under civil law or co-ownership (co-ownership of vessels), submit form M3 ‘Statement of Commencement/Change of Operations of a Non-Natural Person’ to the Tax Office in accordance with Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force, or at the One-Stop-Shops in accordance with the provisions of Joint Ministerial Decision No 63577/13-06-2018 (Government Gazette, Series II, No 2380 and 2681), as appropriate and where necessary.

How can an undertaking be registered for VAT purposes as a consequence of carrying out intra-Community transactions (intra-Community acquisition, intra-Community receipt of service)?

In the case of a natural person who intends to carry out exclusively transactions without the right of deduction of input tax (e.g. doctor), then the registration for VAT purposes may be achieved by submitting form M2 ‘Statement of Commencement/Change of Operations of a Natural Person’ to the Tax Office, in accordance with the provisions of Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force.

If the registration obligation for VAT purposes arises at the commencement of operations, the form will then be submitted, in any case, together with the other information provided for by the law, by filling in the field ‘Commencement’, whereas if it occurs at a later point in time, the form will be submitted by filling in the field ‘Change’.

For purposes of better understanding, the following example is provided, showing Table b5 of form M2 filled in by a doctor who receives services from another EU Member State and is liable to pay the relevant tax in Greece:

β5	b5
β6	b6
ΕΝΔΟΚΟΙΝΟΤΙΚΕΣ ΣΥΝΑΛΛΑΓΕΣ	INTRA-COMMUNITY TRANSACTIONS
Δεν ασκεί	Not exercised
Παροχή Υπηρεσιών	Provision of services
Αποκτήσεις	Acquisitions
Υποχρεωτικά	Mandatory
Παραδόσεις	Deliveries
Προαιρετικά	Optional
ΕΙΔΙΚΟΣ ΦΟΡΟΣ ΚΑΤΑΝΑΛΩΣΗΣ	EXCISE DUTY
ΟΧΙ	NO
ΝΑΙ	YES
Καπνό β/κών	Tobacco industry
Αλκοολούχων	Alcoholic
Πετρελαιοειδών	Petrol products
ΠΙΝΑΚΑΣ β5: Αν διενεργούνται ενδοκοινοτικές αποκτήσεις ή και παραδόσεις υποχρεωτικά ή προαιρετικά σύμφωνα με τις διατάξειςτου Ν. 1642/86 όπως ισχύουν σήμερα, διαγραμμίζονται ανάλογα οι αντίστοιχες ενδείξεις.	TABLE b5: If intra-Community acquisitions and/or deliveries are carried out either on a compulsory or on a voluntary basis in accordance with the provisions of Law 1642/86, as currently in force, the corresponding indications shall be crossed out accordingly.

It is also clarified that legal persons or legal entities apply the above mutatis mutandis, by submitting form M3 ‘Statement of Commencement/Change of Operations of a Non-Natural Person’ to the Tax Office - and only in the case of ‘Commencement’ alternatively at the One-Stop-Shops, in accordance with the provisions of Decision ΠΟΛ 1006/2013 (Government Gazette, Series II, No 19/2014) of the Secretary-General for Public Revenue, as currently in force, and Joint Ministerial Decision No 63577/13-06-2018 (Government Gazette, Series II, No 2380 and 2681), as appropriate and where necessary.

It should be noted that specifically taxable persons who carry out exclusively transactions for which they are not provided a right of deduction, legal persons not subject to tax and farmers under the special regime of Article 41, provided they purchase goods from other Member States, whose annual value excluding VAT in the previous or current year exceeds EUR 10 000, conduct intra-community acquisitions of goods, and are required to submit the relevant return at the time when the conditions for taxation are established, in accordance with Article 11(1) of the VAT Code (VAT Code). (VAT Code Article 36.6.b).

However, it should be noted that if the goods acquired are new means of transport or goods subject to excise duty (petrol products, alcohol and alcoholic beverages and tobacco products), there is always an intra-Community acquisition or delivery of these goods within the country, irrespective of the capacity of the person acquiring the goods or the capacity of seller.

If they so wish, the above persons (taxable persons without the right to deduction, legal persons not subject to tax and farmers under the special regime of Article 41) may, by a statement, opt for taxation in Greece of their acquisitions from other Member States, irrespective of their amount.

This statement shall be submitted to the competent tax office and shall be valid for at least two management periods within which it cannot be revoked. If this statement is submitted during the management period and after the 10th of its first month, it shall be valid for the current as well as for the following two management periods. This statement shall be valid for more than two years if it has not been revoked after the lapse of the two-year period. In the event of revocation, the relevant statement submitted shall take effect from the beginning of the next management period.

How can an undertaking established in another Member State of the EU register only in Greece for VAT purposes?

For taxable transactions carried out within Greece by an undertaking with an establishment in another EU Member State and having its place of taxation in Greece and, if there is no obligation for a permanent establishment in Greece, the undertaking may choose either to be assigned a TIN/VAT number by appointing a tax representative, to act on its behalf (becoming liable to submit returns and pay the VAT due and being jointly liable), or to be assigned a Greek TIN/VAT number and fulfil itself its return obligations, and to pay the relevant VAT.

If the undertaking chooses to be assigned a Greek TIN/VAT number and to fulfil its own return obligations by paying the relevant VAT, it must follow the procedure set out in ΠΟΛ 1113/2013 — Government Gazette, Series II 1252, SAA: ΒΛ4ΜΗ-6ΤΦ Decision of the Minister and Deputy Minister for Finance ‘Procedure for assigning TIN numbers and submitting periodic VAT returns for the payment of tax by taxable persons established in another Member State of the European Union’ as amended and in force (see also relevant files).

To the contrary, if the undertaking chooses to be assigned a TIN/VAT number by appointing a tax representative acting on its behalf, it must follow the procedure provided for in Decision ΠΟΛ 1111374/9160/2152/0014/ΠΟΛ1281/1993 — Government Gazette, Series II, No 700 of the Deputy Minister for Finance. Also relevant are the instructions given in Circular ΠΟΛ 1011/2011 ‘Obligations of a tax representative by taxable persons established in another Member State of the European Union’. See also the relevant files.

How can an undertaking established in a third country (outside the EU) register only in Greece for VAT purposes?

In the case of taxable transactions, which have Greece as their place of taxation, by an undertaking established in a third non-EU country, and provided that there is no obligation for a permanent establishment in Greece and that they are not taxable transactions for which the underlying Greek recipient becomes liable, the (third country) undertaking in question must be assigned a TIN/VAT by appointing a tax representative, who will act on its behalf (taking on the responsibility for the submission of returns and the payment of the VAT due and being jointly and severally liable).

In this case, the undertaking must be assigned a TIN/VAT by appointing a tax representative, who will act on its behalf and must follow the procedure set out in Decision ΠΟΛ 1111374/9160/2152/0014/ΠΟΛ1281/1993 — Government Gazette, Series II, 700 of the Deputy Minister for Finance.

For the fullest possible understanding, the following chart is presented:

Διαδικασία εγγραφής στην Ελλάδα για σκοπούς Φ.Π.Α. αλλοδαπών επιχειρήσεων, εντός ή εκτός Ε.Ε., χωρίς εγκατάσταση στο εσωτερικό της χώρας.	Procedure for registration in Greece for VAT purposes of foreign undertakings, within or outside the EU, without an establishment within Greece.

Αλλοδαπή επιχείρηση η οποία πραγματοποιεί φορολογητέες πράξεις στην Ελλάδα	Foreign undertaking carrying out taxable transactions in Greece
(βλ. ενδεικτικά ερώτηση 1)	(see for example question 1)

Δημιουργείται υποχρέωση για μόνιμη εγκατάσταση της εν λόγω επιχείρησης στην Ελλάδα βάσει της φορολογίας εισοδήματος.	An obligation is created for a permanent establishment of the undertaking in question in Greece on the basis of income tax.

ΝΑΙ	YES
ΟΧΙ	NO

Ως προς το ΦΠΑ, ισχύουν οι υποχρεώσεις που προβλέπονται για τις εγκαταστημένες στην Ελλάδα επιχειρήσεις.	As regards VAT, the obligations laid down for undertakings established in Greece apply.

Η εν λόγω επιχείρηση έχει εγκατάσταση σε άλλο κράτος μέλος της Ε.Ε.;	Does the undertaking in question have an establishment in another EU Member State?

ΝΑΙ	YES
ΟΧΙ-είναι εγκατεστημένη σε τρίτη χώρα	NO – it is established in a third country

Λήψη ΑΦΜ(ΦΠΑ) (Ενότητα Α)	Assignment of TIN (VAT) (Section Α)

ή	or

Ορισμός φορολογικού αντιπροσώπου (Ενότητα β)	Appointment of a tax representative (Section b)
Ορισμός φορολογικού αντιπροσώπου (Ενότητα β)	Appointment of a tax representative (Section b)

Finally, interested parties are advised to consult the ‘Handbook with useful information concerning the procedure for be being assign Tax ID Numbers (TIN) and the submission of VAT returns by taxable persons established in another EU Member State or in a third country’, which has been posted on the website of the Independent Authority for Public Revenue (IAPR) in both Greek and English.

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