An increase in the Limit of VAT exemption for small businesses is coming to 18,000 euros

The Ministry of National Economics and Finance considers Increase in the threshold gross revenue to which small enterprises are exempted from the obligation to collect and list VAT (value added tax) to the budget.

New measure

The current threshold 10,000 euros It is planned to increase to 15,000 or 18,000 euros With July 1, 2025, As part of the implementation of the European Directives 2020/285.

The measure is directed at Reducing administrative costs For hundreds of thousands of small enterprises and self -employed, including freelancers, as well as to reduce the load on the tax authorities.

Comparison with EU

Threshold 10,000 euros In Greece, it is considered low in comparison with other EU countries: in Italy, Romania and the Czech Republic it reaches 85,000 eurosin Lithuania – 55,000 eurosin Poland – 40,000 euros.

Delay and obligations

Greece had to introduce Directive to December 31, 2024. The delay caused a warning of the European Commission, and the authorities pledged to complete the regulation by the end June 2025.

Budget balance

The ministry defines the threshold to increase did not lead to significant loss of budget. It is studied whether there will be losses from the cancellation of the collection VAT less or equal to the benefit from Reducing costs to management for the state and business. Benefit from simplification of procedures and reduction of bureaucracy must compensate for budget losses, providing a neutral or positive effect.

Estimates and scripts

Assessments when increasing the threshold to 25,000 euros showed losses in 125 million euros Every year, there are too many because of the budget goals of 2025. Probable script – threshold 15,000 or 18,000 euros.

Plan Aada

Operating plan Aada (Ανεη complabacks of items αρχή δημοσίων εσόδων, the independent body of state revenues) for 2025 provides for the completion of the procedures for Directives 2020/285 To June 2025. It is planned to launch electronic platformthrough which small enterprises will be able to apply for exemption from VAT In Greece and other EU countries.

New mode

The new mode will allow enterprises to work without VATif their annual turnover does not exceed the new threshold. Greek companies will be able to request liberation in other EU countries if their turnover in the EU does not exceed 100,000 euros.

Liberation from VAT means that enterprises will not transfer tax for operations, but will lose the right to deduction VAT For purchases and services. This requires a thorough assessment before switching to a new mode.

The final decision on the threshold is expected by the end May 2025the implementation will begin with July 1, 2025.

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