- The circular E.2068/2023 provides clarifications on the correct application of circular E.2066/2023 regarding the tax treatment of Contract For Differences (CFD) from a VAT perspective.
- The circular provides clarifications on the VAT exemption for over-the-counter derivatives.
- The scope of application includes individuals who engage in over-the-counter derivatives.
- The circular clarifies that the VAT exemption explicitly applies only to derivatives traded on a stock exchange, not over-the-counter derivatives like CFDs.
- However, the circular does not exclude the application of other VAT exemptions provided by the VAT Code to over-the-counter derivatives.
- The circular states that services and income derived from over-the-counter derivatives are exempt from VAT if at least one of the contracting parties or participants, such as a credit institution or an Anonymous Investment Services Company (AISC), is exempt from VAT according to the provisions of the VAT Code.
- The circular reminds that the VAT exemptions defined in Article 22 of the VAT Code are mandatory for the entities and transactions covered by this article.
- The circular emphasizes that income from CFDs is always considered income from the provision of services, as CFDs are agreements to exchange the difference between the current price of the underlying asset and its price at the time of contract expiration, and the underlying asset is not acquired or purchased.
- Therefore, when one of the contracting parties in a CFD is located outside Greece, within or outside the EU, the provisions of Article 14 of the VAT Code regarding the place of supply and consequently the place of taxation of the service apply primarily.
Source: taxheaven.gr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
