AADE Issues Clarifications on VAT Exemption for Small Enterprises (A.1011/2026)

1. Scope of the VAT Exemption

AADE confirms that the exemption applies to:

• EU‑established SMEs performing cross‑border supplies of goods and services, provided EU‑wide turnover (current and previous year) does not exceed €100,000.
  [athens-times.com]
• Domestic Greek enterprises applying the traditional Greek small‑business exemption remain subject to the €10,000 domestic turnover threshold.
  [en.parapolitika.gr]

2. Eligibility Conditions

To qualify for the cross‑border SME exemption in Greece:

• Total EU turnover ≤ €100,000.
• Turnover in Greece ≤ €10,000, for non‑established EU SMEs operating in Greece.
  [en.parapolitika.gr]
• The conditions must be simultaneously met in the current and previous year; otherwise, VAT liability applies retroactively.

3. Administrative Obligations

AADE clarifies that the new scheme substantially reduces compliance burdens:

For EU‑established SMEs entering the Greek regime:

• A prior notification must be submitted via the myAADE digital portal, indicating:
  • Member States where the SME will use the exemption,
  • Estimated turnover,
  • Status of previous-year transactions.
    [athens-times.com]
• Quarterly reports must be filed by the last day of the month following each quarter end.
  [en.parapolitika.gr]

For Greek enterprises exporting services or goods cross‑border:

• Quarterly reporting is also required when volumes fall under the EU exemption.
  [vatcalc.com]

4. Monitoring & Validation by AADE

AADE confirms it will:

• Share exemption declarations electronically with other EU tax authorities,
• Validate turnover,
• Issue special VAT identification numbers with “EX” suffix for enterprises operating under the cross‑border exemption.
  [vatcalc.com]

If an enterprise exceeds threshold levels:

• A final report must be filed within 15 working days,
• The exemption ceases immediately,
• VAT becomes retroactively due in Greece for all affected transactions.
  [athens-times.com]

5. Interaction with Domestic (Greek) SME Scheme

The AADE clarifications emphasize coexistence of:

• Domestic SME exemption (≤ €10,000 annual Greek turnover), and
• EU cross‑border exemption (≤ €100,000 EU‑wide turnover).

Greek SMEs can therefore:

• Operate VAT‑exempt domestically under the €10,000 threshold, and
• Make VAT‑exempt cross‑border supplies up to €100,000 through the EU scheme, subject to proper notifications.
  [en.parapolitika.gr]

6. Compliance Enforcement

The clarifications highlight enhanced compliance controls:

• Continuous monitoring of declarations and intra‑EU data exchanges,
• Risk of exclusion from the regime for non‑compliance, including:
  • Failure to file reports,
  • Exceeding turnover thresholds,
  • Providing inaccurate information.
    [vatupdate.com]

Enterprises excluded from the scheme may face:

• Retroactive VAT registration,
• Retroactive VAT assessments,
• Potential administrative penalties.
  [vatupdate.com]

7. Key Practical Takeaways

• The Greek publication A.1011/2026 aligns local rules with the EU-wide small‑enterprise VAT exemption, significantly reducing VAT bureaucracy for cross‑border trade.
• Greek SMEs need to evaluate:
  1. Domestic turnover vs. €10,000 threshold,
  2. EU‑wide turnover vs. €100,000 threshold,
  3. Correct notifications and quarterly reports to avoid exclusion.
• Foreign SMEs operating in Greece benefit from a simplified process coordinated through AADE and the myAADE portal.