Limit for VAT exemption set to go up

Kathimerini English - - Front Page -

The Fi­nance Min­istry will ta­ble a reg­u­la­tion in Parliament in the next few days in­creas­ing the limit for the exemption of com­pa­nies from value-added tax pay­ments de­pend­ing on their an­nual tak­ings.

Sources say that the cur­rent limit of 10,000 euros will rise to 25,000 euros. The busi­nesses that choose to be exempt from VAT will not charge the tax on the de­liv­ery of goods or the sup­ply of any ser­vices.

Gross rev­enues mat­ter

If an­nual tak­ings may rise above the limit set, the exemption will not ap­ply. The limit con­cerns total gross rev­enues within one financial year from a com­pany’s en­tire range of ac­tiv­i­ties that are also used for the cal­cu­la­tion of income tax.

New en­ter­prises will have nor­mal VAT sta­tus in their first year and will only be able to choose whether to be exempt from their sec­ond year, and pro­vided they meet the gross rev­enues cri­te­rion.

Cost cut­ting

The planned reg­u­la­tion is ex­pected to re­duce ad­min­is­tra­tive costs both for the tax au­thor­i­ties and small en­ter­prises. It will also as­sist smaller com­pa­nies in terms of com­pet­i­tive­ness when com­pared with larger ones, con­cern­ing de­liv­er­ies of goods and sup­ply of ser­vices.

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