- The circular E. 2068/23.11.2023 provides clarifications regarding the correct application of circular E. 2066/2023 on the tax treatment of Contract For Differences (CFD) derivatives.
- The clarifications specifically address the VAT exemption for over-the-counter derivatives and apply to individuals who engage in over-the-counter derivative transactions.
- The circular emphasizes that the VAT exemption explicitly applies only to derivatives traded on stock exchanges, while over-the-counter derivatives are not explicitly exempt.
- However, the circular clarifies that other VAT exemptions provided by the VAT Code may still apply to over-the-counter derivatives.
- The circular also states that services and income derived from over-the-counter derivatives transactions are exempt from VAT if at least one of the contracting parties or participants, such as a credit institution or an Investment Services Company, is exempt under specific provisions of the VAT Code.
- It is reminded that the VAT Code defines mandatory exemptions for certain goods and services provided within the country.
- The circular further explains that income derived from Contract For Differences (CFD) transactions is always considered income from the provision of services, as CFDs are agreements to exchange the difference between the current price of an underlying asset and its price at the time of contract expiration.
- When one of the contracting parties in a CFD transaction is located outside Greece or 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.
