Update March 15, 2025
On March 13, 2025, the Official Journal of the European Union published the ”COUNCIL IMPLEMENTING DECISION (EU) 2025/502 of 5 March 2025 authorising Greece to introduce a special measure derogating from Articles 218 and 232 of Directive 2006/112/EC on the common system of value added tax.”
On July 2, 2024, Greece requested authorization from the European Commission to implement a special measure allowing mandatory electronic invoicing for transactions among taxable persons in Greece, effective from July 1, 2025, to December 31, 2027. The request, which aims to enhance VAT compliance and reduce fraud, was communicated to other EU Member States, and Greece confirmed all necessary information was provided for assessment.
Greece operates a digital platform called myDATA, where entities must report their transaction data. The proposed measure would facilitate real-time transmission of electronic invoice data to this platform, helping the tax administration to quickly identify VAT non-compliance and combat fraud.
Greece believes that the transition to electronic invoicing will not impose excessive burdens, as it is already common in various sectors, and it is also implementing mandatory electronic invoicing for public procurement. The measure is expected to reduce costs associated with traditional invoicing methods and improve efficiency.
The Commission agreed to authorize the special measure until December 31, 2027, with the condition that Greece must submit an assessment report if it seeks an extension. The special measure will terminate if a general electronic invoicing system is adopted by the Council before the end date. Importantly, it preserves customers’ rights to receive paper invoices for intra-Community transactions.
The decision emphasizes that the measure is proportionate, time-limited, and unlikely to shift fraud to other sectors or Member States, ensuring it will not negatively impact overall tax revenue.
Key Decisions:
- Greece can only accept electronic invoices from taxable persons within its territory.
- Recipients in Greece cannot refuse electronic invoices issued by taxable persons in Greece.
- Greece must notify the Commission about the implementation of these measures.
- The decision is effective from July 1, 2025, to December 31, 2027, with specific conditions for any extensions.
Source eur-lex.europa.eu
Update February 25, 2025
- Special Measure for Electronic Invoicing: Greece is authorised to implement mandatory electronic invoicing for transactions between taxable persons within its territory, deviating from Articles 218 and 232 of Directive 2006/112/EC, from 1 July 2025 to 31 December 2027.
- Implementation and Benefits: The measure aims to enhance the efficiency of tax collection, reduce VAT fraud, and simplify administrative processes through real-time data transmission to Greece’s myDATA platform. It is expected to lower costs associated with paper invoicing and improve compliance.
- Conditions and Reporting: Greece must notify the European Commission of the national measures taken to implement this decision and provide a report by 31 March 2027 assessing the measure’s effectiveness in combating VAT fraud and its impact on businesses. The measure will cease if a general EU system for electronic invoicing is adopted before the end date.
Source Council of the European Union
Extensive summary
- Approval of Special Measure: The Council of the European Union has authorized Greece to introduce a special measure that allows for mandatory electronic invoicing, derogating from Articles 218 and 232 of Directive 2006/112/EC on VAT.
- Implementation Period: The special measure will be effective from 1 July 2025 until 31 December 2027, during which all transactions between taxable persons established in Greece must use electronic invoices.
- Mandatory Electronic Invoicing: Greece is permitted to only accept invoices in electronic format from taxable persons within its territory, aiming to enhance efficiency and compliance in VAT reporting.
- Recipient Acceptance Not Required: The decision specifies that the use of electronic invoices will not require prior acceptance by the recipient if they are also established in Greece, facilitating smoother transactions.
- Integration with myDATA: The electronic invoicing system will be integrated with Greece’s digital platform, myDATA, which will allow for real-time transmission of transaction data, improving the tax administration’s ability to monitor compliance.
- Combatting VAT Fraud: The primary goals of the special measure include enhancing the detection of VAT fraud, particularly circular or ‘carousel’ fraud, by providing high-quality transaction data to the tax authorities quickly.
- Administrative Efficiency: The implementation of electronic invoicing is expected to reduce costs associated with paper invoicing, streamline processes for businesses, and enable prefilled VAT returns, ultimately lowering administrative burdens.
- Assessment and Reporting: By 31 March 2027, Greece is required to submit a report to the European Commission assessing the effectiveness of the electronic invoicing measure in combating VAT fraud and simplifying tax collection.
- Potential for Extension: If Greece deems it necessary to extend the special measure beyond 2027, it must request an extension from the Commission, accompanied by a detailed report on the measure’s effectiveness and impact on taxable persons.
- Cessation of Special Measure: The special measure will automatically cease if a general system for electronic invoicing is adopted by the Council before 31 December 2027, ensuring that the special measure does not conflict with broader EU regulations on electronic invoicing.
Published on Jan 15, 2025
Proposal for a COUNCIL IMPLEMENTING DECISION authorising Greece to introduce a special measure derogating from Articles 218 and 232 of Directive 2006/112/EC on the common system of value added tax
- Proposal Overview: Greece seeks authorization to mandate electronic invoicing for B2B transactions, derogating from Articles 218 and 232 of Directive 2006/112/EC.
- Request Submission: Greece submitted the request on July 2, 2024, and the Commission informed other Member States by September 24, 2024.
- Objective: The aim is to enhance VAT collection efficiency and combat tax evasion through real-time data transmission to the myDATA platform.
- Current System: Greece’s myDATA platform already collects transaction data, but electronic invoicing will streamline and improve data quality.
- Expected Benefits: Faster detection of VAT fraud, prefilled VAT returns for businesses, and reduced administrative costs.
- Implementation Timeline: The derogation is proposed to be valid until June 30, 2026, or until new EU-wide VAT rules are adopted.
- Consistency with EU Policies: The proposal aligns with existing EU policies and similar derogations granted to other Member States like Italy, France, Poland, Germany, and Romania.
- Impact on Businesses: While initial adaptation costs are expected, long-term benefits include reduced invoicing costs and improved digital processes.
- Legal Basis and Proportionality: The proposal is based on Article 395 of the VAT Directive and is proportionate, limited in scope and time.
- Future Developments: The proposal anticipates the adoption of the VAT in the digital age directive, which will standardize electronic invoicing across the EU.
Source
