VAT query
Thread poster: Iris70
Iris70  Identity Verified
Local time: 19:34
English to Dutch
Oct 1, 2009

Hi all,

I have recently transferred my translation business from The Netherlands to Greece and was wondering about the VAT. According to my bookkeeper I have to fill out this block with the amounts I charge my clients, put those in a large book and at the end of every three months I need to pay VAT over those amounts. I thought we didn't need to do that within the EU or doesn't that apply to Greece? I mean to pay 19% over what you make every month is a little steep in my opinion...

Any suggestions welcome!

MTIA,
Iris


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Nadia-Anastasia Fahmi  Identity Verified
Greece
Local time: 19:34
English to Greek
+ ...
Depends Oct 1, 2009

Dear Iris,

This applies only to clients based in Greece. In this case you are also subject to 20% withholding tax.

If your clients are based abroad, then you will have to issue an invoice (from the block) and all these invoices are submitted at the end of the year to the tax authorities to be taxed as "income" at various rates depending on the taxable amount.

Hope I helped.

Have a nice day!


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Iris70  Identity Verified
Local time: 19:34
English to Dutch
TOPIC STARTER
Foreign clients Oct 1, 2009

Dear Nadia,

Thanks for your swift reply! My clients are all based abroad. So I don't need to collect all my invoices every three months but save them up until the end of the year?

Thanks,
Iris


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Dimitra Karamperi  Identity Verified
Greece
Local time: 19:34
English to Greek
+ ...
Some more clarifications Oct 1, 2009

Iris70 wrote:

Dear Nadia,

Thanks for your swift reply! My clients are all based abroad. So I don't need to collect all my invoices every three months but save them up until the end of the year?

Thanks,
Iris


Hi Iris,

As an freelancer ("professional") you must keep a book (Category B') where you record all the invoices you issue (with VAT or not) and all your business expenses (phone, utilities, supplies, pc's, software, furniture etc.). Anything that you buy in Greece contains VAT.

This means that there is a VAT from your invoices (VAT-inv) and a VAT from your expenses (VAT-exp). The VAT from your invoices may be zero in case you issued absolutely no invoices for Greek clients or clients from anywhere else without a valid VAT nr. The VAT from your expenses is usually not zero, unless you have no expenses at all, which is very unusual - and unwise I should say.

What you are required to do by the law is to submit a report for your VAT for each quarter.

If (VAT-inv) > (VAT-exp), you have to give (i.e. pay) this amount to the state.

If (VAT-inv) < (VAT-exp), you don't have to pay anything and this amount is transferred to the next quarter (or year(s)). In any case, you have to submit the VAT report even if you do not have to pay.

If you fail to submit the VAT report for each quarter, you pay a fine.

This VAT has nothing to do with your income and the income tax.
In the end of the year you sum up your income, subtract your expenses along with the social insurance contributions (possibly OAEE), subtract any withholded tax and then you have the taxable income.

In any case, I suggest you find the soonest a good accountant since having to do with the local authorities is not a good idea in Greece...

Best,
Dimitra

[Edited at 2009-10-01 15:09 GMT]


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Iris70  Identity Verified
Local time: 19:34
English to Dutch
TOPIC STARTER
Thanks Oct 2, 2009

Thanks Dimitra, that explains it. My bookkeeper probably knows all this, or at least I hope so, but I just wanted to come a little prepared when submitting my booklet on Monday. Ecxellent explanation!

Kalo savatokiriako all!

Iris


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Dimitra Karamperi  Identity Verified
Greece
Local time: 19:34
English to Greek
+ ...
I am glad I helped Oct 2, 2009

Iris70 wrote:

Thanks Dimitra, that explains it. My bookkeeper probably knows all this, or at least I hope so, but I just wanted to come a little prepared when submitting my booklet on Monday. Ecxellent explanation!

Kalo savatokiriako all!

Iris


Kalo savatokiriako kai se sena,
Dimitra


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professional64
Local time: 19:34
English to Greek
Invoices to Clients based abroad Nov 11, 2009

I think that in the case of foreign clients (EU or outside the EU) all you have to do is to keep the electronic invoices you issue to them as proof of your income.
Does anyone know if you have to write down the same invoice in the ''block'' as well?


Thanks,
Peter


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Dimitra Karamperi  Identity Verified
Greece
Local time: 19:34
English to Greek
+ ...
Invoicing system & Numbering Nov 11, 2009

professional64 wrote:

I think that in the case of foreign clients (EU or outside the EU) all you have to do is to keep the electronic invoices you issue to them as proof of your income.
Does anyone know if you have to write down the same invoice in the ''block'' as well?

Thanks,
Peter


Hi Peter,

I think that the reply to your question depends on the system you use for invoicing.
Do you use blocks or do you have an electronic system?
As far as I know, when one uses blocks as a freelancer, these are numbered and attested by the tax office. You cannot issue an invoice/receipt without using the block and following its numbering.
In any case, you should check this with your accountant. They should be able to tell you how to deal exactly with this issue.

Best,
Dimitra


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