The most important arrangements of the 13.04.2020 Legislative Act regarding the measures against the Covid-19 pandemic and other urgent provisions:
Α. Tax measures
- How does the tax benefit of setting off 25% of the VAT payments against other tax liabilities apply?
Βusinesses impacted by the pandemic may offset 25% of the VAT due for the period 01.03.20 – 31.03.20 paid until 30.04.2020 against any kind of other tax liabilities due from 01.05.2020 onwards. This benefit applies provided that the VAT liabilities are timely and fully paid and VAT liabilities of the previous month are paid as well.
- Within which period may businesses apply for a retroactive change of their business activity code (KAD)?
A retroactive change of the main business activity code refers to applications which have been filed from 23.03.2020 to 24.04.2020.
The retroactive effect of the change stands from 20.03.2020 and earlier. The applications are accepted provided that the new main business code was registered on 13.04.2020 as secondary code of the business. The new business code will determine whether the business will or not benefit from the financial measures of April onwards.
Β. Measures related to donations for the fight against the pandemic
- Does the VAT exemption for the supplier affect all kind of donations?
The VAT exemption for the supply of services and supply of goods from the supplier to the donor as regards donations of hospital equipment, hygienic protective means and any kind of medicine refers also to donations that have been accepted by the Minister of Health before 30.03.2020. The VAT exemption is mentioned in the invoice issued by the supplier to the donor, while the donation is approved by the Ministry of Health according to a simplified procedure. Furthermore, the suppliers maintain theirright to deduct input VAT in regard to the relevant transactions.
- What about donations to the National Public Health Organization (EODY)?
The National Public Health Organization may accept any donation in kind or in cash, that can be used by third parties, individuals and legal entities to track coronavirus cases. The simplified acceptance procedure for cash donations also applies to donations carried out before 13.04.2020, and in any case after 25.02.2020.
Further the VAT exemption for the supply of goods from the supplier to the donor covers also donations to the National Public Health Organization.
- Measures for tourism and Transportation
- How are tourism businesses entitled to act in case of termination of contracts with clients or other tourism enterprises?
Tourism businesses are entitled to offer an 18-month valid credit note – voucher to clients or other tourism businesses, in case of termination of the contract instead of a cash refund.
- What kind of contracts does this measure cover?
The measure covers contracts for the provision of tourism services to Greek and foreign residents, whether in the form of a travel package or not, as well as contracts agreed with Greek or foreign tourism enterprises. The termination of the aforementioned contracts should occur within the period from 25.02.2020 to 30.09.2020 from any of the related parties.
- What should tourism businesses do in order to take advantage of this measure?
The tourism business should notify the client or enterprise in writing for the offer of a voucher within 30 days as of the termination of the contract or within 30 days as of 13.04.2020 (i.e. date the relevant Legislative Act was issued) in case the contract has been already terminated.
In case tourism businesses misses the aforementioned deadlines and fails to notify the client or tourism enterprise, they are obliged to refund any money of deposit to the clients.
- What happens if the client does not use the voucher within the 18-month period?
In this case the tourism business is obliged to refund to the client an amount of money equal to the voucher.
- What about cancellations of flights and voyages?
An 18-month valid voucher is provided to passengers instead of getting a cash refund for their tickets, in case of cancellation of their flight or voyage due to reasons related to the coronavirus pandemic.
- Which cancellations of flights and voyages does this measure cover?
This measure covers claims due to (i) cancellations of flights occurred from 25.02.2020 to 30.09.2020 and (ii) cancellations of voyages occurred from 25.02.2020 to 31.10.2020.
- What if the voucher is not used within the 18-month period?
In case the voucher expires without being used, the client may claim a cash refund equal to the amount of the credit.
