Adoption of small business EU VAT registration thresholds; art sales; margin scheme; virtual events
On 1 August 2025, Greece enacted Law 5222/2025, introducing wide-ranging tax reforms. A major focus is on VAT, with updates designed to bring Greek rules into line with recent EU directives on small business exemptions, VAT rates, and digital services.
See more in our Greek VAT guide.
EU Special Scheme for small business registrations
The law transposes the key provisions of Council Directive (EU) 2020/285, modernising VAT treatment for small enterprises. Businesses established in Greece with annual domestic turnover below EUR 10,000 are exempt from VAT. For non-established businesses, the exemption applies only if their total EU-wide turnover in the previous year did not exceed EUR 100,000. If thresholds are breached in the current or previous year, the exemption is immediately revoked.
To ensure proper monitoring, businesses established in Greece that use this exemption in another EU member state must submit quarterly reports to the Greek tax authority (AADE). Reports must include the special VAT ID issued by the other member state (with the “EX” suffix) and the value of exempt supplies made domestically and abroad. AADE will then validate and electronically share the information across the EU. Once confirmed, the EX-suffixed VAT number is issued.
VAT Rates and Cultural Goods
In line with Council Directive (EU) 2022/542, the law introduces greater flexibility in VAT rates. Key measures include:
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Extension of the margin scheme: Taxable dealers may apply the margin scheme to supplies of works of art, collectors’ items, and antiques if specific conditions are met (e.g., import by the dealer or purchase directly from the artist).
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Reduced VAT rate on cultural imports: Imports of works of art and cultural goods under CN codes 9701–9706 will now benefit from a 6% reduced VAT rate.
Digital and Virtual Services
The law also clarifies VAT rules for virtual events and digitally accessed services. Previously, the place of supply was based on the physical location of the event. Under the new rule, for streamed or otherwise digital access, VAT is due where the non-taxable customer is established or resides, aligning with EU-wide principles.
These updates modernise Greece’s VAT system, reduce compliance barriers for small businesses, and ensure consistency with the EU’s evolving VAT framework.
