Nonprofit Status Does Not Exclude VAT Liability or Input Tax Deduction for Branches and Headquarters

• A non-profit company can still be subject to VAT and entitled to input tax deduction.
• The branch and the central office are considered a single tax entity for VAT purposes.
• Outputs (sales) of the central office are also considered outputs of the branch.
• The case involved a foreign non-profit cooperative providing telecommunications services to its members, with revenues from member contributions invoiced by the central office.
• The Greek branch’s expenses were covered by transfers from the central office without issuing tax documents, but VAT obligations still applied.

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.

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