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Postponed VAT Accounting To Boost Imports Industry
Taxand Greece takes a look at how the new law will encourage the increasing development of business engaged in international trade.
Subject to special conditions and relevant licensing, foreign importers will no longer be required to pay VAT at the customs office upon import, however they will still need to report this VAT in the respective periodical VAT return.
This measure results in eliminating the cash-flow burden of importers, who were obliged to pay VAT at the time of import and often ended up later in a VAT refund position. The measure only applies in the case that more than 90% of the imported goods are destined for intra-community supplies and/or re-exportation.
Thresholds for qualifying under the simplified procedure are set at imports of statistic value of at least EUR 120 million for the first 5 years, to be increased to EUR 300 million thereafter.
It should be noted that the aforesaid thresholds may be met also by a group of companies as a total, not necessarily by one single importer.