Greece proposes automatic VAT regime transition for farmers

The Independent Authority for Public Revenue (AADE) is set to implement an automatic transition for farmers from the special VAT regime to the standard VAT regime. This measure is part of a draft bill from the Ministry of National Economy and Finance aimed at amending the Tax Procedure Code.

Under the proposed regulations, if a farmer no longer meets the requirements for the special VAT regime and fails to submit a timely declaration to transition, the tax administration will automatically move them to the standard regime. This transition will take effect on January 1st of the year following the year in which the requirements were no longer met.

This automatic process will result in changes to the taxpayer's business activity subject, accounting system, VAT status, and business headquarters, which will be set as the individual's permanent residence address. Farmers will have a 10-day window following the automatic transition to submit a declaration to correct or update their tax registry details.