Accounting

ACCOMODATION IN HOTELS – VAT PAYMENT

FREE ACCOMMODATION IN HOTELS – SELF-SUPPLIES – PAYMENT OF VAT In this particular appeal to the Dispute Resolution Directorate (DRD), we have the case of a hotel which provided free rooms and accommodation services exclusively to its associates (professionals-agents), as part of contractual relationships with them. The purpose was to inspect and certify the infrastructure and services offered, in order to make corresponding recommendations to potential customers for choosing this particular hotel. Therefore, these acts constitute a means of facilitating the corporate purpose of the appellant, as they aim at promoting its business and contribute directly and decisively to the performance of taxable transactions. However, the administration rejected the claim and did not accept the hospitality expenses as the law

SPECIAL EXCISE TAX ON ELECTRONIC CIGARETTES

VAT CHANGES IN CATERING – REINSTATEMENT OF 24% ON CERTAIN DRINKS – SPECIAL EXCISE TAX ON ELECTRONIC CIGARETTES OR ‘ELECTRICALLY HEATED PRODUCTS’ With the new decision E.2002/28-12-2023, we have changes in the VAT of non-alcoholic beverages. Therefore, until 31.12.2023, the reduced VAT rate (13%) applies to the provision of non-alcoholic beverages, juices, and drinks, according to the provisions of article 11 of Law 4690/2020. However, from 1.1.2024 onwards, the standard VAT rate (24%) applies to the provision of both alcoholic and non-alcoholic beverages, juices, and drinks, with the exception of the provision of coffee, cocoa, tea, chamomile, and other infusions, for which the reduced VAT rate of 13% applies until 30.6.2024. It is noted that from the above it emerges

The expense for online advertising paid by Greek companies to foreign businesses is considered payment of royalties

With decision No. 811/2023 by the Hellenic Revenue Authority (ΔΕΔ), it was interpreted that the expenditure for online advertising paid by Greek companies to foreign businesses is considered a payment of royalties and requires withholding and remittance of the prescribed tax rate of 5% – 20%, which is determined based on the Double Taxation Avoidance Agreement (DTAA). Additionally, in cases of non-submission of the declaration, a penalty is imposed as per Article 59 of the Income Tax Code (K.F.D.) which is 50% of the tax or Article 54 of the K.F.D., which is 100 or 500 euros. Several issues arise here, as the majority of these payments are made to large multinational companies that, for no reason, accept no tax

Payslip Note

Detailed listing in the clearance note of additional remunerations for overtime, extra hours, work on Sundays, at night, off-site work, etc. The employer, when making salary payments and issuing the clearance note, has the right to request from the employee to sign a receipt. This receipt should be detailed, indicating the individual amounts that make up the employee’s remunerations, as well as the reasons for their payment. Conversely, an undetailed receipt, which does not specify the separate amounts paid for each reason, is considered indefinite and is not taken into account by the court. Therefore, when salary clearance notes only state the total amount paid each month for “off-site, Sundays, holidays, overtime, and night work” without breaking down the amounts

Changes for freelancers, short-term rentals, and other provisions

Under Law 5073/2023, there are significant changes in tax legislation, with the most important changes outlined below:   Article 3. Sale of Real Estate Using Banking Payment Methods During the drafting of notarial documents for the transfer of real estate with an onerous cause, pre-contracts, and settlement acts, the payment of the price is exclusively made using banking payment methods. Any notarial or private document that records a down payment or partial or full payment of the price in cash or does not record the payment of the price using a banking payment method is automatically void, and it is prohibited to transfer it to the respective books. It does not produce any legal effect against the parties, the state,

Contribution of real estate, yachts and other assets to various companies (Private Company, SA, Shipping Company for Recreation Crafts)

During the establishment of an IKE (Private Company), SA (Sosiete Anonyme), or NEPA (Shipping Company for Recreation Crafts), it often happens that one of the partners or shareholders wants to contribute assets, usually real estate or a yacht, instead of cash (in-kind contributions). In cases of in-kind contributions, an assessment report of the commercial value of these assets is required. Aegean Consulting fully undertakes the preparation of the valuation report for all assets with the purpose of their contribution to IKE, SA, or NEPA.   A similar situation may occur when assets such as real estate, vessels, or other property are contributed with the aim of increasing the company’s share capital. In cases of contributions of assets for the purpose

Rental reductions mandatory and non-mandatory

Pursuant to L. 4753/2020 amending legislative act dated 20.03.2020 (ratified by L. 4683/2020) and published in the Greek Government Gazette (A’227/18.11.2020), due to the persistence of Covid 19 pandemic and in order to combat the negative repercussions thereof, the following are provided

ACCOMODATION IN HOTELS – VAT PAYMENT

FREE ACCOMMODATION IN HOTELS – SELF-SUPPLIES – PAYMENT OF VAT In this particular appeal to the Dispute Resolution Directorate (DRD), we have the case of a hotel which provided free rooms and accommodation services exclusively to its associates (professionals-agents), as part of contractual relationships with them. The purpose was to inspect and certify the infrastructure and services offered, in order to make corresponding recommendations to potential customers for choosing this particular hotel. Therefore, these acts constitute a means of facilitating the corporate purpose of the appellant, as they aim at promoting its business and contribute directly and decisively to the performance of taxable transactions. However, the administration rejected the claim and did not accept the hospitality expenses as the law

SPECIAL EXCISE TAX ON ELECTRONIC CIGARETTES

VAT CHANGES IN CATERING – REINSTATEMENT OF 24% ON CERTAIN DRINKS – SPECIAL EXCISE TAX ON ELECTRONIC CIGARETTES OR ‘ELECTRICALLY HEATED PRODUCTS’ With the new decision E.2002/28-12-2023, we have changes in the VAT of non-alcoholic beverages. Therefore, until 31.12.2023, the reduced VAT rate (13%) applies to the provision of non-alcoholic beverages, juices, and drinks, according to the provisions of article 11 of Law 4690/2020. However, from 1.1.2024 onwards, the standard VAT rate (24%) applies to the provision of both alcoholic and non-alcoholic beverages, juices, and drinks, with the exception of the provision of coffee, cocoa, tea, chamomile, and other infusions, for which the reduced VAT rate of 13% applies until 30.6.2024. It is noted that from the above it emerges

The expense for online advertising paid by Greek companies to foreign businesses is considered payment of royalties

With decision No. 811/2023 by the Hellenic Revenue Authority (ΔΕΔ), it was interpreted that the expenditure for online advertising paid by Greek companies to foreign businesses is considered a payment of royalties and requires withholding and remittance of the prescribed tax rate of 5% – 20%, which is determined based on the Double Taxation Avoidance Agreement (DTAA). Additionally, in cases of non-submission of the declaration, a penalty is imposed as per Article 59 of the Income Tax Code (K.F.D.) which is 50% of the tax or Article 54 of the K.F.D., which is 100 or 500 euros. Several issues arise here, as the majority of these payments are made to large multinational companies that, for no reason, accept no tax

Payslip Note

Detailed listing in the clearance note of additional remunerations for overtime, extra hours, work on Sundays, at night, off-site work, etc. The employer, when making salary payments and issuing the clearance note, has the right to request from the employee to sign a receipt. This receipt should be detailed, indicating the individual amounts that make up the employee’s remunerations, as well as the reasons for their payment. Conversely, an undetailed receipt, which does not specify the separate amounts paid for each reason, is considered indefinite and is not taken into account by the court. Therefore, when salary clearance notes only state the total amount paid each month for “off-site, Sundays, holidays, overtime, and night work” without breaking down the amounts

Changes for freelancers, short-term rentals, and other provisions

Under Law 5073/2023, there are significant changes in tax legislation, with the most important changes outlined below:   Article 3. Sale of Real Estate Using Banking Payment Methods During the drafting of notarial documents for the transfer of real estate with an onerous cause, pre-contracts, and settlement acts, the payment of the price is exclusively made using banking payment methods. Any notarial or private document that records a down payment or partial or full payment of the price in cash or does not record the payment of the price using a banking payment method is automatically void, and it is prohibited to transfer it to the respective books. It does not produce any legal effect against the parties, the state,

Contribution of real estate, yachts and other assets to various companies (Private Company, SA, Shipping Company for Recreation Crafts)

During the establishment of an IKE (Private Company), SA (Sosiete Anonyme), or NEPA (Shipping Company for Recreation Crafts), it often happens that one of the partners or shareholders wants to contribute assets, usually real estate or a yacht, instead of cash (in-kind contributions). In cases of in-kind contributions, an assessment report of the commercial value of these assets is required. Aegean Consulting fully undertakes the preparation of the valuation report for all assets with the purpose of their contribution to IKE, SA, or NEPA.   A similar situation may occur when assets such as real estate, vessels, or other property are contributed with the aim of increasing the company’s share capital. In cases of contributions of assets for the purpose

Rental reductions mandatory and non-mandatory

Pursuant to L. 4753/2020 amending legislative act dated 20.03.2020 (ratified by L. 4683/2020) and published in the Greek Government Gazette (A’227/18.11.2020), due to the persistence of Covid 19 pandemic and in order to combat the negative repercussions thereof, the following are provided