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Procedure for VAT Exemption on Goods Delivered or Acquired within the European Union

3 days ago
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  • Procedure Overview and Documentation Requirements: The document outlines a comprehensive procedure for obtaining VAT exemptions on the delivery and intra-community acquisition of goods intended for export or transfer to another EU member state. It specifies that businesses must submit an Excise Duty Declaration and a Special Duplicate VAT Exemption Certificate at the Control Customs Office, detailing the transaction and providing required supporting documentation. This includes the MRN of the Excise Declaration, invoice details, and the quantities of goods involved to validate the exemption.
  • Deadlines for Export and Intra-Community Deliveries: The regulation establishes strict deadlines for completing exports or intra-community deliveries. Generally, goods must be exported or delivered within nine months of the acceptance of the Excise Duty Declaration, with the possibility of extending this period by an additional four months under specific circumstances. For holders of an Authorized Economic Operator (AEO) certificate, these deadlines are extended to twenty months for exports or intra-community deliveries. The document also stipulates that failure to meet these deadlines results in the obligation to pay the corresponding VAT.
  • Compliance and Penalties: The procedure includes clear guidelines for compliance, including maintaining accurate records of transactions and supporting documents to facilitate customs verification. In cases where businesses do not fulfill the export or delivery requirements within the specified timeframe, they are required to pay the applicable VAT immediately. Additionally, interest on late payments may accrue, and penalties may be imposed for non-submission of required clearance accounts, emphasizing the importance of adhering to the established regulations and timelines.

Source aade.gr

Unofficial translation

DECISIONS Number A.1022

Procedure for VAT exemption on the delivery and intra-community acquisition of goods subject to Excise Duty, Consumption Tax, and goods exiting from Free Customs Complex, Free Customs Area, and Customs Supervision Area intended to be exported or delivered to a VAT-subject person established in another member state of the European Union.

THE ADMINISTRATOR OF THE INDEPENDENT AUTHORITY FOR PUBLIC REVENUE

Having considered:

  1. The provisions: a. Articles 2, 5, 14, 15, 20, 21, 23, 24, 30, 40, paragraph (z) of section 1 and especially the authorizing provision of paragraph 2 of article 29, paragraph (d) of section 1, paragraph 2 and especially the authorizing provision of paragraph 4 of article 33 and article 67 of the VAT Code (Law 5144/2024, A’162), b. Chapter A “Establishment of the Independent Authority for Public Revenue” of Part One of Law 4389/2016 “Urgent provisions for the implementation of the agreement on fiscal targets and structural reforms and other provisions” (A’ 94) and specifically paragraph (d) of section 2 of article 2, article 7, paragraph 1 of article 14 and article 41 thereof, c. Articles 29, 31, 33, 53, 53a, 54, 55, 56, 63, 64, 72, 73, 94, 109, 110, 142, 155 and 158 of the National Customs Code (Law 2960/2001, A’265), d. Law 4308/2014 “Greek Accounting Standards, related regulations and other provisions” (A’251), e. Regulation 2446/2015 (EU) of the Commission of July 28, 2015 of the European Parliament and the Council for supplementing Regulation (EU) No. 952/2013 of the European Parliament and the Council regarding detailed rules concerning certain provisions of the Union Customs Code (L343), f. Decision POL.1167/29.07.2015 of the General Secretary of Public Revenue of the Ministry of Finance “Procedure for VAT exemption on the purchase and importation of goods intended for export or intra-community delivery as well as services directly related to these transactions” (B’1808), g. Decision A.1158/4.11.2022 of the Administrator of IAPR “Determination and updating of type and content of forms of the tax administration” (B’5703), h. Decision A.1437/20.11.2019 of the Administrator of IAPR “Mandatory electronic submission of supporting documents for the Declaration of Excise Duty and other Taxes (DEFK) – Record Keeping” (B’4443), i. Decision D.ORGA.1125859 EX 2020/23-10-2020 of the Administrator of the Independent Authority for Public Revenue “Organization of the Independent Authority for Public Revenue” (B’4738).
  2. Decision D.ORGA.1065199 EX 2022/20.07.2022 of the Administrator of the Independent Authority for Public Revenue “Delegation of responsibilities and authorization to sign ‘By order of the Administrator’ to tax administration bodies” (B’3886).
  3. Act No.1 dated January 20, 2016 by the Ministerial Council “Selection and appointment of General Secretary of the General Secretariat for Public Revenue of the Ministry of Finance” (Y.O.D.D.18), in conjunction with the provisions of the first sentence of paragraph 10 of article 41 of Law 4389/2016 (A’94) and decisions No.39/3/30-11-2017 (Y.O.D.D.689) by the Board of Directors of IAPR and No.5294/17.01.2020 by the Minister of Finance “Renewal of term for the Administrator of the Independent Authority for Public Revenue” (Y.O.D.D.27) as well as document No.7608EX2025/17-01-2025 by the Minister of National Economy and Finance on “Renewal of term for the Administrator of the Independent Authority for Public Revenue (IAPR)” (Y.O.D.D.11).
  4. The need to establish a procedure for VAT exemption during delivery and intra-community acquisition of goods intended to be exported or delivered to another member state of the European Union.
  5. The fact that no expenditure is caused against the budget of the Independent Authority for Public Revenue (IAPR) by this decision.
  6. The fact that this decision establishes a new administrative procedure officially titled “Procedure for VAT exemption on delivery/intra-community acquisition of goods intended to be exported or delivered to another EU member state (EDDA)”, we decide:

Article 1 Definitions – Scope

  1. For the purposes of this decision: a. Delivered and intra-community acquired goods at the time they are exported or delivered to another EU member state are: aa) Identical when they are in exactly the same condition as when acquired or have undergone some usual operations listed in Annex 71-03 of REGULATION No.2446/2015 (EU), which do not result in changing their eight-digit Combined Nomenclature (CN) code nor require determining yield rates to calculate their participation percentage in the final product. ab) Processed when exported or delivered to another EU member state as derivative products resulting from processing initially acquired goods exempt from VAT requiring yield rate determination as per section A paragraph 3 article 2 herein to ascertain their participation percentage in the final product. b. Control Customs Office is defined as the customs office within whose territorial jurisdiction lies the tax warehouse of an approved warehousekeeper-seller under articles 55 and 64 Law No.2960/2001 or main place where goods are received by a registered/certified recipient or customs office supervising Free Customs Complex, Free Customs Area or Customs Supervision Area as applicable.
  2. This decision does not apply to energy products subject to Excise Duty, manufactured tobacco products and product under section f) paragraph 1 article 53A Law No.2960/2001.

Article 2 Procedure for VAT exemption on delivery and intra-community acquisition of goods intended for export or intra-community delivery to another EU member state A. Submission of Excise Duty Declaration and Other Taxes

  1. For VAT exemption: a) On delivery from a tax warehouse under article 63 Law No.2960/2001 by an approved warehousekeeper-seller to a VAT-subject buyer granted a “Special Duplicate VAT Exemption Certificate” under decision POL.1167/2015 GG DE intended for export or delivery to another EU member state, b) On intra-community acquisition by a registered/certified recipient-buyer granted a “Special Duplicate VAT Exemption Certificate”, c) On delivery from a business recognized as Free Customs Complex, Free Customs Area, Customs Supervision Area to a VAT-subject buyer granted a “Special Duplicate VAT Exemption Certificate”, an Excise Duty Declaration and Other Taxes (DEFK) is submitted by the VAT-subject buyer in whose name the Special Duplicate VAT Exemption Certificate is issued per articles 109 and 110 Law No.2960/2001 at Control Customs Office along with Special Duplicate VAT Exemption Certificate and required supporting documents. The corresponding VAT is assessed but not collected; D.E.F.K remains monitored at Control Customs Office until exemption finalization or VAT payment.
  2. Transaction value on Special Duplicate VAT Exemption Certificate is determined per article 24 VAT Code (Law No.5144/2024 A’162), upon which corresponding VAT is calculated and stated in D.E.F.K. In cases a) and c) paragraph 1 approved warehousekeeper-seller issues sales invoice excluding VAT with note “VAT Exemption per section z paragraph 1 article 29 and section d paragraph 1 article 33 VAT Code under decision […] Administrator IAPR”.
  3. When delivered or intra-community acquired goods exempt from VAT are intended for export or intra-community delivery processed per subparagraph ab) section a paragraph 1 article 1 yield rate determination is required to ascertain their participation percentage in final product per analogous application provisions under processing regime for re-export.

B. Deadline for export or intra-community delivery

  1. Identical goods a) Export or intra-community delivery deadline per this decision is nine (9) months from D.E.F.K acceptance extendable up to four (4) months following procedure in paragraph 3 below. b) If holder at D.E.F.K submission time has AEO certificate export or intra-community delivery deadline per this decision is twenty (20) months from acceptance extendable up to four (4) months following procedure in paragraph 3 below. Holder with AEO certificate fills relevant field in D.E.F.K; AEO certificate obtained post-D.E.F.K submission during set deadline cannot be used for already submitted document; if AEO certificate revoked new deadline set per subparagraph a if elapsed holder must export or deliver intra-community within month else corresponding VAT payable.
  2. Processed goods a) Export or intra-community delivery deadline per this decision if raw materials intended for product manufacturing after special processing or packaging materials used by manufacturing businesses for product production or packaging intended for export or intra-community delivery is eighteen (18) months from D.E.F.K acceptance extendable up to six (6) months following procedure in paragraph 3 below. b) If holder at D.E.F.K submission time has AEO certificate export or intra-community delivery deadline per this decision for goods under subparagraph a is thirty-two (32) months from acceptance extendable up to eight (8) months following procedure in paragraph 3 below. Holder with AEO certificate fills relevant field in D.E.F.K; AEO certificate obtained post-D.E.F.K submission during set deadline cannot be used for already submitted document; if AEO certificate revoked new deadline set per subparagraph a if elapsed corresponding VAT payable.
  3. Extension Extension per paragraphs above approved for justified reason; application submitted by holder to Head Customs Region before initial deadline expiry; copy kept at Control Customs Office. Extension granted after Head Control Customs Office approval verifying reasons preventing export or intra-community delivery within initial deadline.

Article 3 Finalization of VAT exemption – Actions by customs authorities A. Finalization exemption on delivery or intra-community acquisition goods intended for delivery to another EU member state

  1. For finalization exemption from VAT on delivery or intra-community acquisition goods intended for delivery to another EU member state holder submits clearance account within two (2) months post-deadline per section B article 2 applying decision A.1437/20.11.2019 Administrator IAPR at Control Customs Office detailing intra-community deliveries within set deadline including at least: • Full details holder • MRN Excise Duty Declaration and Other Taxes • Special Duplicate VAT Exemption Certificate Registry Number per decision POL.1167/2015 Administrator IAPR • Deadline intra-community delivery goods • Sales Invoice Number/Date • Bank Proof Number/or note partial payment • Recapitulative Statement Intra-Community Deliveries Number • Intrastat Declaration Number • Bill Number • Exact quantities delivered domestically or acquired from another member state identical and processed including yield rate.
  2. Holder keeps supporting documents listed in clearance account paragraph above in business records proving intra-community delivery.

B. Finalization exemption on delivery or intra-community acquisition goods intended for export

  1. For finalization exemption from VAT on delivery or intra-community acquisition goods intended for export holder submits clearance account within two (2) months post-deadline per section B article 2 applying decision A.1437/20.11.2019 Administrator IAPR at Control Customs Office detailing exports within set deadline including at least: • Full details holder • MRN Excise Duty Declaration and Other Taxes • Special Duplicate VAT Exemption Certificate Registry Number per decision POL.1167/2015 Administrator IAPR • Deadline intra-community delivery goods • Sales Invoice Number/Date • Bank Proof Number/or note partial payment • Export Declaration MRN • Bill Number • Exact quantities delivered domestically or acquired from another member state identical and processed including yield rate.
  2. Holder keeps supporting documents listed in clearance account paragraph above in business records proving export.

C. Other formalities exemption from VAT

  1. Invoice payment mandatory via bank except proven offset obligations between involved businesses.
  2. Supporting documents kept by holder ensuring easy customs control.
  3. For intra-community deliveries and exports under same D.E.F.K single clearance account submitted.

Article 4 Non-finalization exemption from VAT – Violations

  1. If holder does not export or deliver intra-community within set deadline per article above goods received exempt from VAT due to delivery or intra-community acquisition must immediately pay corresponding VAT at Control Customs Office upon initial or extended deadline expiry.
  2. If immediate payment not made interest calculated from day after initial or extended deadline expiry.
  3. If clearance account not submitted within set deadline per article above Control Customs Office imposes fine per paragraph above Law No.2960/2001 conducts check verifying export or intra-community delivery.

Article 5 Exceptions right exemption from VAT

  1. No right exemption if holder committed smuggling violation per article above Law No.2960/2001 unless subject to provisions article above law.
  2. For application provisions paragraph above smuggling violation established with customs violation protocol per article above Law No.2960/2001.

Article 6 Customs authorities checks Control Customs Office responsible conducting checks verifying correct application provisions herein requesting assistance customs office within territorial jurisdiction holder’s business headquarters or accounting records location per Law No above “Greek Accounting Standards related regulations other provisions” (A’251).

Article 7 Effective date This decision effective upon publication in Government Gazette.

This decision shall be published in Government Gazette.

Athens, February 11, 2025

The Administrator

GEORGIOS PITSILIS

Kapodistriou Street No34, Postal Code10432 Athens

Tel: +30-210-5279000

Texts for publication: [email protected]

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