(Decision of the Ministry of Economy no. 1006442/6952/1090/0014/POL. 1010/23.1.2003)

In relation to the matter mentioned above and following questions by tax payers and Tax Authorities on the application of the provisions of article 18, Law 2992/2002 (Government Gazette 54Α/20.3. 2002), which amends the provisions of articles 35, 36 and 55 of the VAT Code (L.2859/ 2000), taking into consideration the procedure set out by Decision of the Ministry of Economy no.1048281/ 2583/529/Α0014/POL 1174/4.6.2002 we are providing the following guidelines and clarifications in detail on the correct and consistent implementation thereof: 

1. Definition of tax liable person. Definition of tax representative. 

The provisions of article 35 of the VAT Code (Law. 2859/2000), stipulate that tax liable persons, i.e. persons who are obliged to submit the relevant statements and to pay the relevant tax to the State for actions they perform involving delivery of goods, intra-community acquisition of goods and provision of services as well as imports of goods. 

As a general rule, the definition of a tax liable person is the same as the one of a person subject to taxation. 

However, it is pointed out that the definition of a person subject to taxation includes both the subject person, who is carrying out taxable actions or tax-excluded actions, with a tax deduction right, as well as the person subject to taxation, who carries out tax-excluded actions, without tax deduction right (article 22 of the VAT Code (l. 2859/2000). 

According to the new provisions, as of 1.1.2002 the obligation to appoint a tax representative has been withdrawn in the case a person subject to taxation who is a resident of another Member State operates inside the country and carries out actions for which the relevant VAT must be paid to the Greek State. 

The obligation for tax payment burdens the person residing in another Member State and subject to taxation, who must receive a TIN in Greece, based on which the person in question will submit statements and pay taxes. 

To safeguard the Greek State, provisions have been made as to the obligation of appointing a tax representative, who must be residing within the country's territory, perform the obligations of the person subject to taxation and provide any requested information to the competent tax audit bodies. 

As to the procedure, the aforementioned representative shall carry out the exact actions as the tax agent, the only difference being that the person subject to taxation is the businessman residing within the Community, i.e. the tax representative has no joint responsibility for the payment of taxes (as is the case with the tax agent). 

Moreover, for purposes of the application of this article it is at first clarified that the obligation of a foreign person to be a permanent or temporary resident within the territory of the country is determined according to the provisions of article 100, Law 2238/1994 or the local agreement for avoiding double taxation that our country has signed with other Member States. 

However, it is pointed out that it is possible for the aforementioned liable person to receive a TIN and carry out actions which under no circumstances are relevant to his a permanent residency which he may have acquired in Greece. 

2. Actions for which the appointment of a tax representative is required. 

Following is an indication where the appointment of a tax representative is required: 

• Provision of services of paragraph 2 article 14 of the VAT Code (l. 2859/2000) if the provided conditions for their taxation in our country apply, such as for example services on real estate located in Greece. 

• Sales from a distance where the recipients are residents of Greece, provided that the terms and conditions for taxation of such actions in Greece are met. 

• Import of goods which are then delivered in Greece or are sent or transferred to another Member State. 

• For the purposes of operation of tax warehouse. 

• Storage of goods (in cases where there are no conditions for permanent residency) 

3. Actions for which the appointment of a tax representative is NOT required. 

The appointment of a tax representative is not required for the following actions: 

A.  When the tax liable person is the recipient of goods and services, if that person is subject to taxation and for the following actions in particular: 

a) delivery of goods that is carried out inside the country in the framework of triangular intra-community transactions, that are part of the simplified practice, according to paragraph 3 article 15 of the VAT Code (l. 2859/2000) . 

b) provision of services per paragraphs 3 and 4 article 14 of the VAT Code (L. 2859/2000) provided that receiver of these services has a TIN/VAT in the particular country, such as services of intra-community transfer of goods and intervention for the provision of such services, royalties, provision of advertising services, studies etc. 

B. Export of goods, by a seller residing inside the country acting on his behalf and on behalf of the buyer subject to taxation by the European Union, according to the procedure applied and set out in article 1 a of Decision of the Ministry of Economy no.1111374/ 9160/ 21 52/0014/POL 1281/26.8.1993, as amended by Decision of the Ministry of Economy no.1077223/ 4331/869/0014/POL. 1180/ 29.7.1995. 

C. In occasional cultural, artistic, athletic, scientific, educational, entertaining or similar events inside the country which also include conference organization by the persons subject to taxation and residing in a different Member State of the Community. 

These persons, instead of appointing a representative, may submit a bond issued by a bank registered in Greece, which will cover the amount of VAT that corresponds to the aforementioned occasional actions. Details on the procedure for payment of taxes due are provided in 1048281/ 2583/529/Α0014/POL.1174/4.6.2002 Decision of the Ministry of Economy. 

4. Procedure for appointment of tax representative

The people who carry out actions for which the appointment of a tax representative is required, are obliged to appoint an exclusive tax representative in Greece before the realization of such actions. 

Appointment of a tax representative is carried out with a relevant document (authorisation), in which explicit reference shall be made as to the exclusivity of the tax representative who is being appointed and will include the ordering customer's complete information, such as the TIN/VAT issued by the country of residency or any other TIN - whose validity can be easily verified through the intra-community information exchange system (VAT.) - V.I.E.S, his legal form, address and business activity in that country. 

This document is sent by the community-based subject to the person who is already subject to taxation in our country and who receives authorisation to carry out the particular actions in Greece on behalf of the person subject to taxation.

In case the document mentioned above has been written in a foreign language, an official translation into Greek must also be provided. 

5. Persons who may be appointed tax representatives

The appointed tax representatives may be natural or legal entities (excluding legal entities that are not subject to taxation) who are already subject to taxation and are residents of Greece. These persons must be trustworthy, fully capable for contract and operating according to the law. They must accept their appointment and must not have committed any violations according to the provisions of article 30, par. 4, 6, 7 of the Code of Books and Records which would constitute book inaccuracy.  

It is noted that section b of par. 2 article 2 of the Decision of the Ministry of Economy no.POL.1174/4-6-02, which provided the submission of a document verifying that there are is no pending penal prosecution against the tax representative, was withdrawn following Decision of the Ministry of Economy no. POL.1009/2003, since it was considered that this was particularly difficult and was creating practical difficulties and moreover the responsibility for tax payment lies with the liable person operating in the Community and not the representative. 

6. Obligations of the tax representative. 

a) Concerning the Registration and VAT. 

The tax representative, who accepts his appointment, is obliged to submit a statement for the commencement of operations on behalf of the tax liable principle. He must also submit the relevant document (authorisation) to the Tax Authority Bureau that is competent for income taxation or to the local Tax Authority Bureau where the business is registered as well as a statutory declaration of his acceptance of the appointment as a tax representative. 

Along with the statement for commencement of operations, the statement of the tax liable person's relations (Μ 7) must also be submitted in order to declare the tax representative's information and the TIN issued for his own taxation obligations. Moreover, a statement on the registration information of the foreign company (Μ 9) is also submitted in order to declare the TIN number, the trade name, address and activity of the principal in his own country - while the statement of commencement of operations must include the activity performed in Greece, which must be the same as the one performed in the Member State of residence. 

Moreover, upon submission of the aforementioned statement of commencement of operations by the tax representative the principal receives a Tax Registration Number in Greece, following verification of the relevant TIN used in the country of residence and after a review  of the legal standing of the company by the 4th Department of VIES of the 14th VAT Division. 

For facilitation of the tax representative, the competent Tax Authority shall forward by FAX the Μ9 form filled in by the aforementioned Service, in order to verify the principle's information. 

In case the statement of commencement of operations is submitted after the due date by the tax representative on behalf of the taxable principle, all relevant VAT statements (periodic and clearance) must also be submitted to the Tax Authority as these were due at the time when the taxable actions had commenced in Greece. 

Please note that in case of a tax representative change the principle's TIN remains the same, as in the case of submission of statement regarding the suspension of operation and the commencement of operations anew by the same principle, even if a different tax representative is appointed. 

For changing the tax representative, a statement for the change is submitted by the new representative, along with a copy of the relevant document (authorisation) of the principle, mentioning the change in question. In this case, a previous verification of the tax Registration Number is required as well as the control of the legal standing of the principle by the 4th Department (V.I.E.S.) of the 14th VAT Division as resulting from the statement of the foreign company registration information (Μ9). 

Finally, it is understood that in the case the Registration number of the foreign company (principle) changes, a new statement (Μ9) must be submitted, in order to update the information on the tax representative's folder. 

b) Regarding Code of Books and Records 

The tax liable person, who is a resident of a different Member State has the following particular obligations: 

• To keep books, category B or C according to his choice and regardless of the company's legal form. 

• To issue, submit and keep information set out in the provisions of the Code of Books and Records. 

The above obligations are performed by the appointed tax representative in Greece. 

The community-based tax liable person may issue invoices himself from his country of residency for actions performed in our country. He has to print the TIN that he has received from our country, the information of his company  and the TIN issued by his Member State of residency as well as the VAT amount corresponding to the goods or services provided based on the rate applicable in Greece. Copies of the invoices are sent to the appointed tax representatives in our country for the updating of the books kept. 

It is understood that the tax is deducted from the recipient of the said item when such right result from the provisions of the VAT Code . (article 30 L. 2859/ 2000). 

In case of change of the tax representative the books and records kept are delivered to the new tax representative. These tax information remain usable after the full information of the new tax representative are indicated thereon (printed or with stamp) until their expiration. 

In general, the community-based liable person who is subject to taxation has all obligations and rights as is the case with all taxable persons residing in this country, as resulting from the provisions on VAT and the Code of Books and Records. 

As to the payment due, the tax representative issues an invoice to the principle, according to the provisions of article 12 of the Code of Books and Records, which is registered in the books kept by the business. 

7. Non-appointment of tax representative in Greece.  Absence of TIN or permanent residency in our country. 

In case the community-based liable person who is subject to taxation fails to appoint a tax representative for the purpose of receiving a TIN in Greece for taxable actions carried out in our country nor has he acquired a permanent residency in Greece and issues taxation information from the Member State of residency directly to the Greek citizens who are liable to taxation in Greece, printing the TIN that has been issued to him in his country of residency, the kind and value of goods or services provided in our country, the recipient of such information is obliged to print the relevant amount on his clearance VAT statements (Code 666 Sub-table- Input of Table C Input- Output), regardless of the sanctions that will be imposed to the tax liable person for failing to appoint a tax representative and without charging the due tax or paying the relevant amount through an Extraordinary Periodic VAT Statement. 

8. Subjects residing in countries outside the European Union. 

According to the provisions of section d par. 4 of article 36 of the VAT Code (L. 2859/2000) the obligation for appointing a tax representative also applies to these tax liable persons who are residents of countries outside the European Union (Third Countries). 

Please note that in any case where the tax liable person residing in a Third Country, although obliged, fails to appoint a tax representative in Greece, the person responsible for paying the due tax is the recipient of goods or services without this meaning that the said tax liable person is released from the sanctions provided for non fulfillment of his obligations. 

Particularly in case of aircraft leasing where the lessor is a tax liable person residing in a Third Country and no tax representative has been appointed for the payment of the corresponding VAT, the taxable person (lessor) residing in the country, as the recipient of the aforementioned service, must include the due tax in his periodic VAT statement for the tax period in question instead of submitting an extraordinary period VAT statement both for input and for output, the value of the lease as well as the corresponding VAT. 

There is also the possibility to appoint the tax liable person residing in a third country as the person obligated to pay the tax, provided that there is an agreement between the country of residency and Greece, for the operation of an administrative co-operation mechanism, that will ensure correct payment of VAT in a manner relevant to the one applicable for co-operation between the Member States of the European Union. 

This means that, in the case a relevant agreement applies, a tax liable person residing in a Third Country will have the possibility to refrain from the obligation of appointing a tax representative, but will have to carry out the relevant VAT obligations through a representative as is the case with community-based tax liable persons. 

Please note however that for the time being no such agreement exists with any third country. 

9. Full responsibility for payment of tax by a non-liable person who receives goods or services. 

Please note that according to the provisions of section. d  article 55 of the VAT Code (law. 2859/2000), a person who is not liable to taxes (private entity, etc) and who receives goods or services by a tax liable person who is not a resident inside the county has a joint responsibility for payment of taxes due by the tax liable person himself. 

That means that, the above mentioned entity is also the tax liable person in this case also, while the recipient is considered a co-debtor and jointly responsible for the payment of tax only in case he is not a tax liable person. 

It is understood that this provision applies in case the person who is not a resident of this country performs actions that are taxable in Greece and the tax is due either by the tax liable person himself through the appointment of a tax representative (for an entity that is a resident of another Member State), or by the tax agent (for an entity residing in a third country). 

Therefore, in cases where the recipient is not subject to tax and the Greek State is not able to receive the corresponding VAT from the entity who is not a resident of Greece and is liable to tax payment, the State has the right to address the non-liable recipient for the payment of the relevant tax. 

10. Administrative co-operation for collection of receivables

For the facilitation of audit and identification of entities liable for payment of tax in Greece we are attaching hereto the circular no. 1080842/6357 -3/ 0016/POL. 1207/10.7.1996 on the mutual contribution for the collection of VAT payments. 

11. Provisions of a transitional character

The necessary time is provided to those entities subject to taxation, who are residents of another member state and have already appointed a tax agent in Greece, to change the duties of such person from tax agent to a simple representative for the fulfillment of obligations. Therefore the community-based tax liable entities, who have carried out taxable actions upon commencement of the application of the present law (1.1. 2002) in the country through a tax agent, may now continue to perform such actions through the agent, until 31.12. 2002. 

For the above mentioned alteration a statement is submitted to the competent Tax Authority for the alteration of operations, the reason for alteration being the change of the tax agent to tax representative. Copies of the relevant document by the principle must also be submitted (authorisation), indicating the change of the tax agent to tax representative as well as a statement on the information of the registered offices of the foreign company (Μ9) the information of which is also verified, according to the procedure mentioned above (par. 6). 

Please not that as to the Code of Books and Records, new books (category B or C) must be validated by the tax representative on behalf of the principle and the special book of the tax agent must be kept for the time defined in the relevant provisions of the Code of Books and Records. The same applies for taxation information that is being kept.