Regulatory updates - Greece

In a recent announcement, the IAPR introduces changes to the implementation timelines for Greek e-Delivery. This update aims to facilitate a smoother transition for entities required to comply with the new digital monitoring system.

Encompassed changes

• Postponement of deadlines for starting the digital issuance of goods movement documents;
• Establishment of specific timelines for the data transmission to the myDATA digital platform;
• Abolishment of specific sub-sections from previous regulations.

The impacts are an extended deadline for companies to comply with the new digital monitoring requirements and a phased approach, which allows for a gradual transition and reduces the immediate burden on entities.

Additionally, taxpayers have been divided into groups to comply with the implementation roll-out.

Implementation timelines

• Phase One – (initially set to start December 1, 2024) postponed to April 1, 2025, covers the issuance and reporting of e-delivery documents for businesses in specific sectors (pharmaceuticals and medical supplies, energy products, construction materials, olives, and olive oil) and those with a turnover exceeding 200,000 EUR in 2022.
• Phase Two – (initially set to start April 1, 2025) postponed until October 1, 2025, applies to all businesses and requires more comprehensive reporting for issuing e-delivery documents and digitally tracking shipments.

E-delivery was introduced into Greek tax legislation in 2014 under Law 4308/2014 Article 5 and further detailed by the Joint Decision of the Ministry of Finance and the Independent Authority of Public Revenues (IAPR) Α.1122/2024, along with Decision Α.1123/2024.

This framework outlines how companies must issue and transmit e-delivery documents using myDATA ERP solutions or e-invoicing service providers via the myDATA platform.

Two phases of e-delivery and its key aspects

There are two following phases for adopting e-delivery:

• Phase One – 1 December 2024: Issuing and sending e-delivery documents to myDATA, including notifying the recipient using their VAT number.
• Phase Two – 1 April 2025: Monitoring goods during transit, reporting changes in real time, and verifying the quality and quantity of goods.

Furthermore, the key aspects include:

• E-delivery documents must be transmitted in real time before dispatch with MARK and QR Code from the IAPR, and the delivery of the goods cannot be performed later than five days from the date of issuance of the delivery documents;
• Via myDATA, notifications are sent to recipients, and they must confirm receipt;
• Any discrepancies in goods (shortages/surpluses) must be reported by the recipient via myDATA within 15 days;
• For foreign deliveries, Greek recipients are responsible for reporting to myDATA until the 20th day of the following month from the month of the delivery documents issuance.

Reporting Requirements

E-delivery documents must be reported to myDATA by:

• The issuer of delivery notes or 3PL - If a 3PL (third-party logistics) provider manages inventory and issues delivery documents on behalf of a company, the 3PL is responsible for transmitting these documents to myDATA.
• The Greek recipients of goods from foreign suppliers that are not required to report to myDATA.

Content of e-delivery documents

• Phase One: Include details like issuer/recipient information, delivery document number, MARK and QR code, issuance and delivery dates, loading and delivery locations, type and quantity of goods.
• Phase Two: Add precise timing, means of transportation, reloading data, EU intrastate coding, and additional VAT numbers (e.g., transport company, third-party recipients, etc.).

Non-compliance can result in fines ranging from EUR 100 per missing document, limited to EUR 500 per day, to a maximum of EUR 20 000 per year.

This framework underscores an essential transformation in Greek tax administration, emphasizing the importance of accurate and timely electronic documentation. The shift from traditional paper-based methods to digital systems improves efficiency and enhances transparency and accountability in tax reporting. To avoid penalties, businesses operating in Greece must adapt and ensure all required data is submitted accurately within the specified timeframes.

The law 5073/2023 “Measures to Combat Tax Evasion” includes:

• Guidelines regarding electronic invoicing;
• Additional guidance regarding the electronic data transmission obligation; and
• Provisions relating to fines and other penalties applicable in case of non-compliance with this requirement

Also, the Law outlines the following directives for electronic data transmission:

• Electronic submission to the myDATA platform of an organization's data concerning:

1. Tax documents issued (regardless of the issuance method)
2. Accounting books and files,
3. Relevant tax records from electronic cash registers and tax records, and
4. Files and data created by these electronic cash registers.

• The value of an entity's taxable transactions and revenues considered by the tax administration for the purposes of determining the entity's VAT and income tax status must not be lower than those derived from the tax documents transmitted to the myDATA.
• Deductions of taxes and expenses in income determination shall not be considered unless the data on the basis of which the deduction is claimed has been electronically transmitted to the myDATA.
• The deadlines, transaction reports, technical specifications, exemptions, and allowable discrepancy limits, not exceeding 30%, will be defined through Ministerial Decisions issued for this purpose.

According to Law 5073/2023, the following penalties apply in the case of non-compliance with the myDATA platform submission requirements:

In the event of a recurrence of the same violation within five years of being notified of the penalty levied by Greek tax authorities, the penalties depicted above will be doubled. Additionally, for each subsequent identical violation during this five-year period, the penalties will be quadrupled, with consideration for fiscal year limits.

Extension of the incentives for taxpayers adopting e-invoicing through accredited service provider

As specified in paragraphs 2 and 3 of article 71F of Law 4172/2013, the e-invoicing incentives provide to businesses who select to use e-invoicing through an accredited e-invoicing service provider have been extended for two more years, fiscal years 2023 and 2024.

Revised technical specifications for myDATA (version 1.0.7) have been issued, encompassing:

• Integration of updates related to QR codes;
• Tax-exempt documents; and
• Updates to transaction classification.

The IAPR has released both the aforementioned information and additional combinations of document types and income-expenditure classifications on the AADE portal.

On 17 September 2023, Prime Minister Kyriakos Mitsotakis held a press conference addressing issues such as tax evasion and upcoming measures to combat it.

This proposal consists of ten following actions:

• Electronic invoices will become mandatory in 2024. This reform will enable tax authorities to cross-check transactions in real time;
• By 2024, cash registers will be connected with POS, affecting approximately 450,000 businesses. Therefore, every POS transaction will be transmitted in near real-time to the Greek State Auditing Services (AADE);
• The expansion of myDATA is ongoing, and the full implementation will be completed within 2024;
• The electronic payment system (EFT/POS) obligation will be applied to other sectors, such as the retail market;
• Buyers and sellers of real estate must use a bank means of payment;
• A pilot of consignment notes will be launched in 2024 to monitor real-time transit of goods;
• The fine for the use of cash over 500 euros is increased, which will double the amount of the transaction;
• Most welfare benefits (e.g., child benefits, birth benefits, unemployment benefits) will be paid through debit cards;
• Smuggling offenders are excluded from cooperation with all fuel trading companies; and
• Intervention in short-term leases (interventions that include length of time, stricter penalties, etc.).

The full press conference is available here (in Greek).

On 12 April 2023, the Government of the Hellenic Republic announced in the Government Gazette the obligation to submit electronic invoices by economic operators[1].

What is the obligation about?

Public authorities and entities are required to receive and process e-invoices, and economic operators must submit electronic invoices that are in accordance with the European standard.

Timelines

This obligation applies to the conclusion and/or execution of contracts by following public authorities and public entities from the specified period:

1. From 12 September 2023 by:

• the Ministry of Infrastructure and Transport
• the Ministry of Digital Governance
• the Ministry ofImmigration and Asylum
• the Municipality of Athens
• the National Central Authority for Health Procurement
• the Ministry's National Central Procurement Authority of Development and Investments
• the Information Society S.A.
• the Athens University of Economics
• Attiko Metro S.A.
• EYDAP S.A.
• Egnatia Odos SA.

2. From 1 January 2024 by

• bodies of the rest of the Central Administration.

3. From 1 June 2024 by:

• other contracting authorities/bodies

4. From 1 January 2025:

• other expenses of the General Government.

Which contracts are not included in the mandate?

The obligation to submit e-invoices does not apply to:

• Contracts concluded in the fields of defense and security
• Public contracts and contracts for projects, preparation of studies and provision of technical and other related scientific services, supplies and general services;
• Concession contracts for works and services, as well as rules for the electronic invoices issued for each category of expenditure of the contracting authorities or contracting bodies;
• Low value public contracts specified by the law;
• Certain public contracts between public sector entities;
• Certain contracts between contracting authorities;
• Certain contracts concession between public sector entities;
• Other expenses, the amount of which is up to EUR 2500,00.

   

  
  

[1] According to the Law no. 4412 of the Hellenic Republic on Public Works, Procurement and Services, "economic operator" means any natural or legal person or public entity or association of such persons and / or entities, including temporary business partnerships, which offers to the market the execution of works and / or projects, the supply of products or the provision of services.

Before this new announcement, the myDATA implementation mandate was postponed to 1 July 2021. The new timelines, as expressed by the Ministry of Finance, are now as follows.

Transfer of income data to the myDATA platform

• Starting 1 October 2021:
  • Businesses (natural and legal persons) with double-entry accounting books with a turnover of over EUR 50 000,00;
  • Businesses (natural and legal persons) with single-entry accounting books with a turnover of over EUR 100 000,00;

   

• As of 1 November 2021, the rules will apply to all other businesses in Greece.

Additionally, companies' income documents issued or yet to be issued by the date the mandatory transmission comes into effect must be transmitted to the myDATA platform no later than 31 March 2022.

It is noted that especially for 2021, the transmission obligation concerns only the income documents and not the accounting classifications of expenses.

Interconnection of tax mechanisms (cash registers, etc.) with AADE

Gradually, and until November 2021, AADE requires companies that have electronic tax mechanisms (POS) to:

• Upgrade their systems to produce receipts with integrated QR Code;
• Interconnect to transmit their sales per transaction (one-by-one) in real time on the myDATA platform;
• Remove all other non-upgraded systems.

The interconnection obligation and the corresponding upgrade-withdrawal deadlines for the companies that have POS are as follows:

• 1 September 2021 for companies that:
  • according to Activity Code Number (KAD), were not affected by the pandemic; and
  • in 2019 they had a turnover of over EUR 100 000,00.

   

• 1 October 2021 for companies that:
  • according to KAD, were not affected by the pandemic; and
  • in 2019 they had a turnover under EUR 100 000,00.

   

• 1 November 2021 is the deadline for all other companies.

With the latest postponement of the mandatory implementation of myDATA platform, the Greek authorities are hoping for a smooth adoption and look forward to a new digital era for local businesses.

Previously, Greece was planning to mandate the implementation of myDATA on 1 April 2021.

However, considering the effects of COVID-19, the Greek Ministry of Finance and the Greek Independent Authority for Public Revenue (IAPR) announced that the mandate of myDATA would be postponed to 1 July 2021.

Companies still have to submit the accounting data generated during the first half of 2021 to the authorities through the myDATA platform by 31 October 2021.

The truth about e-invoicing under the e-book reporting scheme in Greece

As previously reported, there has been a lot of progression in the digital reporting landscape in Greece. Under the new e-book scheme, taxpayers have several technical options to fulfil the reporting obligations. One of the options is to submit data via a myDATA-accredited electronic invoicing (e-invoicing) service provider (myDATA Agent). Despite the use of “e-invoicing” language, we have determined that this is in fact a reporting obligation unrelated to e-invoicing.

After carefully studying the regulations and specifications from the IAPR (Independent Authority of Public Revenue) of Greece, we’d like to outline our perspective for using a myData Agent to fulfil the reporting obligations and how it relates to electronic invoicing (e-invoicing).

Reporting obligations are not e-invoicing

Simply put, e-invoices are the same as paper invoices except for being issued and exchanged in an electronic format. E-invoices must include data elements according to a jurisdiction’s indirect tax regulations. Other regulations, such as commercial, may require provisions of additional data elements in an e-invoice. Finally, e-invoices include relevant business data that the trading parties may have agreed upon as part of their business processes.

Under the e-book reporting scheme in Greece, both sellers and buyers are required to submit revenue and expense classification for each item on the invoice based on their VAT treatment to the myDATA platform. In other words, they must assign individual revenue and expense classification to each item on an invoice belonging to exempt, 6%, 13%, 24%, etc. VAT treatment. Typically, neither paper nor e-invoices include such information as they are accounting fields.

Provision of such classification entries along with an invoice summary (synopsis) can hardly be considered the same as e-invoicing. This is a reporting obligation, which can be done in multiple ways. Although Greek regulators refer to one reporting mechanism as “e-invoicing,” it actually has nothing to do with e-invoicing.

Which data must taxpayers report?

Besides the invoice summary (synopsis) and the revenue and expense classification, taxpayers must also report additional data unrelated to invoices. This includes such accounting entries as payroll (salary statements), amortisations and depreciations. Such data is not generally included in an invoice nor processed by e-invoicing service providers.

Buyer reporting obligations

Important to note is that not only sellers (typically the issuer of the invoice) has reporting obligations under the e-book scheme. Buyer reporting obligations are not as time-constrained, but the scope is wider than those of the seller. Buyers must report expense classification for received invoices (already reported by the seller) or payroll, as well as report, among other information, cross-border transactions, transactions with credit institutions, cash transactions, etc.

We wonder how cost-efficient it is for taxpayers to use different reporting mechanisms, one for reporting of sales data (e.g. via myDATA Agent) and another for reporting purchase data (e.g. via ERP).

Exclusivity of the reporting mechanism

As outlined earlier, taxpayers have several mechanisms to select from in order to fulfil reporting obligations. In this respect, it is worth stressing the fact that a taxpayer’s choice has to be exclusive. This means that taxpayers cannot report certain data via ERP or accounting software (e.g. revenues and expenses classification or payroll) while reporting other data via a myDATA Agent (e.g. invoice synopsis). Taxpayers must perform all reporting via the same electronic mechanism.

Assignment of MARK

Earlier drafts of the e-book reporting scheme in Greece communicated that myDATA Agents could act on behalf of myDATA. The IAPR stated that myDATA Agents could perform validation of submitted data and, upon successful validation, approve the submission by assigning a unique identifier (MARK in Greek). However, in the most recent draft regulations, only the myDATA platform will be able to assign the MARK. This means taxpayers can no longer leverage potential benefits of limiting dependency on myDATA through use of a myDATA Agent.

Such a change gives rise to further questions surrounding e-invoicing as a reporting mechanism under these regulations.

Is there an obligation to issue e-invoices?

In short, no. The e-book reporting regulations only cover the reporting of accounting entries to the myDATA platform. Even if a myDATA Agent has been selected to report such entries, the seller is not required to actually exchange the e-invoice with the buyer. The seller also does not have to use the selected myDATA Agent to send the e-invoice to the buyer.

Can I issue e-invoices in Greece?

Yes. The new regulations do not change the taxpayers’ ability or obligations to issue or exchange invoices electronically. Further, our understanding is that a Greek taxpayer has two options for issuing and exchanging e-invoices:

• Use services of a locally accredited myDATA Agent who may or may not be supporting the taxpayer with myDATA reporting obligations; or
• Use services of any e-invoicing service provider preferred by the taxpayer, irrespective of whether the Greek taxpayer uses services of ERP/accounting software or myDATA Agent to fulfil the myDATA reporting obligations.

Are myDATA Agents recommended to fulfil obligations?

myDATA Agents will certainly fulfil an important role under the e-book reporting scheme in Greece. Not all ERP or accounting software will manage to upgrade to the new reporting requirements. Additionally, it is unlikely that systems will be able to hold necessary data or connect myDATA to submit accounting entries. In such cases, taxpayers will be able to use myDATA Agents as middleware between their system and myDATA platform in order to fulfil the e-book reporting obligations.

Conclusions

The regulations under the e-book scheme reporting scheme in Greece that mention “e-invoicing” have nothing to do with e-invoicing. In fact, an “accredited e-invoicing service provider” under these regulations is just one of several mechanisms provisioned for reporting accounting entries to the myDATA platform.

When it comes to actual e-invoicing, the new obligations have limited impact on this process compared to existing regulations and business processes. Taxpayers should be able to continue using their preferred e-invoicing service provider whether accredited as myDATA Agent or not.

In August 2019, the Greek Independent Authority for Public Revenue (IAPR) announced the launch of the new e-book scheme for the transmission of accounting data to the myDATA platform. IAPR launched a public consultation on myDATA and have continued conducting unofficial discussions with various organisations and associations regarding the exact details of the reporting obligation.

The goal of the IAPR is to use the myDATA platform to create online income and balance sheet statements for all businesses operating in the country, by requesting various types of accounting entries, i.e.:

• Accounting entries to determine annual accounting and tax results
• Summary of revenue and expense documents for tax purposes
• Classification of expense and revenue transactions

Businesses’ revenue and expenses will be automatically updated in their e-books on the myDATA platform. All data included in filed tax returns will be cross-checked against the e-book with myDATA.

Liable entities

All entities that are obliged to apply the provisions of the Greek Accounting Standards, are required to report data to IAPR under the e-book scheme, regardless of the type of company.

Reporting methods

IAPR foresees the following methods to report the data to myDATA:

• business management software, such as accounting software or ERP;
• accredited Greek e-invoicing service providers (Υ.ΠΑ.Η.Ε.Σ);
• myDATA web portal for manual entry by small businesses;
• accredited online cash registers for retail sales transactions.

Taxpayers must select and use only one of the reporting options, meaning that one cannot use one method for reporting of certain types of accounting entries and another method for reporting of other types of entries.

Data to be reported

For the uniform application, in the Annex to the decision A.1138/2020, the IAPR has defined the document types and the data of such documents and accounting entries that must be reported to myDATA platform.

Data to be reported by all liable parties:

• invoices (initial, supplementary and credit) and retail receipts;
• data from documents issued due to special tax provisions, as well as data on collection/payment of rent;
• data of the accounting records that form the accounting and tax base for the determination of their accounting and tax result of each tax year. Accounting records on payroll and depreciation must be distinctively transmitted, while other revenue/expense settlement entries carried out at the end of the period can be transmitted in aggregate.

Data to be reported exclusively by the buyers:

• transactions with a foreign non-liable entity, such as intra-community acquisitions, imports from third countries and receipt of services;
• domestic and foreign retail sales receipts;
• transactions related to the sale of electricity and water;
• transactions with credit institutions;
• documents for the payment of contributions to social security funds;
• transactions that should have been reported by the issuer.

In each revenue and expense transaction report (synopsis), the taxpayer must provide a classification of revenues respecting expenses. Such classification data must be provided for each line entry or at least per VAT type.

Timing for reporting

If the taxpayer has selected reporting option via e-invoicing service provider or ERP, the data must be submitted in real-time prior to data issuance and exchange between the trading parties.

Exceptionally, until the end of 2020, if the reporting method via ERP has been selected, the data can be transmitted within five days of their issuance and in any case not later than the 20th day of the following month in which they were issued.

If the taxpayer transmits the data via myDATA web portal, as well as for the data transmitted in accordance with the self-billing or assignment of billing procedure, the reporting operations shall be carried out by the 20th day of the following month in which they were issued.

Mandate timelines

For the initial implementation of the productive operation of the platform that will receive the transmitted data, the below schedule is followed:

• From 20 July 2020: Voluntarily, summary of revenues and expenses (synopsis) of data entries processed from 20 July 2020 onwards through e-invoicing service providers.
• From 20 July 2020: Optionally, classification of revenues and expenses of data entries from 2020.07.20 onwards through e-invoicing services providers.
• From 1 October 2020: Synopsis and classification of revenues and expenses of data issued via other methods of transmission beyond e-invoicing services providers.
• By 31 Dec. 2020: Synopsis and classification of revenues and expenses in case of self-billing issued between 1 Jan. 2020 and 30 Sept. 2020, except for data that has already been transmitted.
• By 31 Dec. 2020: Payroll entries from 1 Jan 2020 to 30 Sept. 2020.
• From 1 Jan. 2021 and by 28 Feb. 2021: In particular, the transmission of data by the recipient, in the event of non-compliance with the obligation to transmit data by the issuer.
• By 28 Feb. 2021: Synopsis and classification of revenues and synopsis of revenues in case of self-billing issued between 1 Jan 2020 and 30 Sept. 2020, except for data that has already been transmitted.
• By 31 March 2021: Possibility of acceptance and classification of transactions by issuers.

However, no response has been published regarding the feedback received from the industry and other stakeholders. There are, nevertheless, developments worth pointing out.

B2G e-invoicing mandate

As the Directive 2014/55/EU has entered into force, the central public entities in Greece have since April 2019 become obliged to receive invoices in an EN compliant format. The obligation will start to apply to all other public entities from April 2020.

According to the latest information, it is likely that the suppliers will be required to submit invoices electronically to the public sector of Greece. The Greek authorities have completed the development and testing of their own PEPPOL Access Point, which in turn means that the PEPPOL BIS 3.0 will be the mandatory EN compliant format.

No dates have been published yet, but sources have stated that this new obligation may start April 2020 and will be in line with the second EU directive deadline for the public sector.

RTIR initiative

Although the public consultations have ended, the IAPR has continued conducting unofficial discussions with various organisations and associations regarding the exact details of the RTIR obligation.

It can be confirmed that the IAPR still intends to receive, in real-time, sales and purchase invoices, and receipt data delivered electronically to the myData platform (My Digital Accounting and Tax Application). However, it is unclear whether the second part of the RTR obligation, which is real-time reporting of income and expense classification, will be removed or deployed at a later stage. The IAPR has received significant objections to this part of the obligation from the industry.

From a technical point of view, it is uncertain whether the RTIR can be combined with the B2G e-Invoicing mandate, as the Peppol BIS 3.0 does not support the anticipated classification data elements.

To date, no final technical specifications of the myData RTIR obligation have been published.

Timelines

None of the above-mentioned requirements have been passed by parliament, and thus there are no final timelines for the inception of the new obligations.

Some of the dates discussed are:

• January 1, 2020 or January 2020 with penalty grace;
• March or April 2020

Takeaways

Even though the timelines are still undisclosed and the final technical specifications have not been published, one should expect that the Greek authorities will express their intentions in the first half of 2020.

Greek entities should be ready to act when the final specifications of the two mandates, RTIR via myData and B2G e-invoicing via Peppol, are released to the public.