New VAT Rules in Greece: Monthly Filings to Replace Quarterly Submissions

08:04 26/3/2025 - Πηγή: Dikaiologitika

The first phase of the transition will begin in April 2025 and in October 2025, the final phase of the reform will take effect.

The Greek government is preparing to introduce a significant change to its VAT (Value Added Tax) system, gradually shifting from quarterly to monthly VAT declarations for many businesses beginning in 2025. This reform, led by the Finance Ministry and the Independent Authority for Public Revenue (AADE), is designed to enhance tax compliance, improve revenue flow, and address recurring issues related to tax evasion and liquidity mismanagement.

The first phase of the transition will begin in April 2025. Any business established from that month onward will be required to file VAT returns every month for its first two years of operation. This obligation will apply regardless of the company’s size or the type of bookkeeping it uses. For example, a business founded in April 2025 will need to submit its first VAT return in May (for April's activity), its second return in June (for May), and so on.
Starting in July 2025, the requirement will expand to include all businesses that began operations earlier in the year, from January onward. Even if they initially filed VAT returns quarterly, they too will shift to monthly declarations from that point forward.

Then, in October 2025, the final phase of the reform will take effect. All remaining businesses in Greece—those that have been operating for years and currently report VAT on a quarterly basis—will be given the option to switch to monthly filing. While this change will not be mandatory for established businesses, it is being presented as a useful tool for improving cash flow management and ensuring timely payment of tax obligations.

The rationale behind this sweeping shift is twofold. First, the government wants to curb tax avoidance practices that have exploited the flexibility of the quarterly system. According to AADE chief George Pitsilis, authorities have observed patterns in which companies are set up during the spring and shut down in the autumn, effectively avoiding their VAT liabilities by leveraging the reporting delays allowed under the quarterly model.

Second, the new system aims to address liquidity issues faced by many businesses. Under the quarterly system, companies often collect VAT from customers and then use that money to cover their short-term expenses. By the time the tax is due, they may no longer have the funds available, leading to missed payments and the need for payment plans or debt restructuring. Monthly reporting is expected to encourage more disciplined financial management and reduce the build-up of tax arrears.

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