Greece VAT and TOMS Guide for Travel Businesses | Greek Tax Rules Explained

Complete overview of Irish VAT, travel rates, TOMS margin rules, and compliance requirements for inbound and outbound operators.

Detailed VAT and TOMS guide for travel agents, tour operators, and DMCs working in Greek. Understand VAT rates, place of supply, accommodation rules, event services, and margin calculations. Includes TOMS treatment, compliance obligations, and VAT reclaim guidance.

Greece – VAT and TOMS for Travel Businesses

Modern VAT system introduced: 1987 (Value Added Tax, ΦΠΑ)
Standard VAT rate: 24 percent
Reduced rates: 13 percent and 6 percent (with special island reductions in limited cases)
Authority: Independent Authority for Public Revenue (AADE)

Greece is one of Europe’s highest-volume leisure destinations and applies a detailed VAT regime across accommodation, food, transport, tours, and cultural services. Greece follows the EU Tour Operator Margin Scheme (TOMS) and has historically applied reduced VAT rates to certain islands, although these reductions are now limited and tightly controlled.

For travel agents, tour operators, and DMCs, the main risks in Greece are incorrect VAT rate application, misunderstanding island reductions, and incorrect treatment of packages versus intermediary services.

VAT treatment of travel and hospitality in Greece

Greece applies different VAT rates depending on the nature of the supply and, in some cases, the geographic location.

Accommodation

Hotel accommodation, holiday resorts, serviced apartments, and similar lodging are subject to 13 percent VAT. This applies to room charges and standard services directly linked to the stay.

Accommodation sold as part of a package does not change the underlying VAT rate, although it may fall under TOMS when sold by a tour operator acting as principal.

Food and beverage

Restaurant and catering services are generally taxed at 13 percent VAT.
Alcoholic beverages supplied in restaurants are also taxed at 13 percent, unlike many other EU countries where alcohol is standard-rated.

Where food is supplied as part of an entertainment or event service, reclassification may apply.

Passenger transport

Passenger transport is subject to 13 percent VAT for most domestic transport services, including ferries, buses, and domestic flights.
International passenger transport is typically exempt or zero rated depending on the route and EU transport rules.

Island ferry services are a major compliance area due to mixed domestic and international legs.

Tours, guides, attractions, and cultural services

VAT treatment varies:

• guided tours and sightseeing services: 24 percent
• excursion services and commercial activities: 24 percent
• museums, archaeological sites, and cultural attractions: 6 percent
• theatres, concerts, and certain cultural performances: 6 percent
• amusement parks and commercial attractions: 24 percent

Correct classification depends on whether the service qualifies as a cultural admission or a commercial tourism activity.

DMC and event organiser services

DMC fees, itinerary design, event management, incentive programmes, staging, and AV services are generally taxed at 24 percent VAT, unless the supply is treated under TOMS as part of a margin scheme supply.

Special VAT rules for Greek islands

Historically, Greece applied reduced VAT rates to many islands. These reductions have been largely withdrawn, except for a limited number of islands under specific economic support schemes.

Key points:

• island VAT reductions are not universal
• eligibility depends on the island and current legislation
• reduced rates cannot be assumed
• incorrect application is a frequent audit finding

Travel businesses should always verify current eligibility rather than relying on outdated practices.

Place of supply rules

Greece follows EU place of supply rules.

Accommodation is taxed where the property is located, meaning Greek hotels are always subject to Greek VAT.

Event services, including conferences, incentives, and exhibitions, are taxed where the event takes place, regardless of customer location.

Restaurant and catering services are taxed where physically carried out.

Cultural, entertainment, and admission-based services are taxed where performed.

For foreign travel companies, this means Greek VAT generally applies whenever travel or events occur in Greece, unless TOMS overrides normal VAT treatment.

Greece and the Tour Operator Margin Scheme (TOMS)

Greece applies the EU TOMS regime to travel agents and tour operators acting as principal.

When TOMS applies

TOMS applies when the operator:

• buys in travel services such as accommodation, transport, excursions, or guides
• sells the travel in its own name
• supplies travel consumed within the EU
• acts as principal rather than intermediary

What is taxed

Only the margin is taxed. VAT incurred on bought-in services used in a TOMS supply is not recoverable.

VAT rate on the margin

The margin is taxed at Greece’s standard VAT rate of 24 percent, regardless of the underlying VAT rates on the components.

Non-EU travel

Where the itinerary takes place entirely outside the EU, the margin may be zero rated. Mixed itineraries require allocation between EU and non-EU elements.

Exclusions from TOMS

TOMS does not apply to:

• intermediary or commission-based agency services
• consultancy and planning services
• event management fees charged separately
• services where VAT is itemised under normal VAT rules

Principal versus agent analysis is critical for Greece, especially for inbound operators and island-based DMCs.

Invoicing requirements in Greece

Greek VAT invoices must include:

• supplier name and address
• supplier VAT number
• customer VAT number where applicable
• invoice number and issue date
• date of supply
• description of services
• taxable amount, VAT rate, and VAT amount
• reference to special schemes such as TOMS where applicable

Invoices must be issued promptly and retained electronically in line with Greek record-keeping requirements.

Invoices under TOMS

For TOMS supplies:

• VAT is not shown as recoverable
• the invoice must reference margin scheme treatment
• customers must not be led to believe VAT can be reclaimed

Digital reporting and e-invoicing (myDATA)

Greece operates a mandatory digital reporting platform known as myDATA.

Who must comply

All businesses established in Greece and all foreign businesses with a Greek VAT registration must submit transaction data electronically to myDATA.

What must be reported

myDATA requires reporting of:

• issued invoices
• received invoices
• classification of income and expenses
• VAT categorisation
• corrections and credit notes

Data must be transmitted either in real time or within prescribed deadlines, depending on the system used.

Interaction with TOMS

TOMS transactions must still be reported to myDATA, even though VAT is not shown on the invoice. Correct classification codes must be used to reflect margin scheme treatment.

Foreign operators without a Greek VAT number are not required to use myDATA.

VAT registration for foreign travel companies

A foreign travel company may need to register for Greek VAT if it:

• supplies event services in Greece
• sells accommodation in Greece as principal
• provides catering or restaurant services in Greece
• supplies cultural or entertainment services in Greece
• has staff or a fixed establishment in Greece
• supplies non-TOMS services requiring Greek VAT

Reverse charge applies to certain B2B services, but not to accommodation, events, or catering.

Non-EU businesses may be required to appoint a fiscal representative.

VAT reclaim position

VAT incurred in Greece may be refundable via:

• the EU 8th Directive for EU businesses
• the EU 13th Directive for non-EU businesses

Greece is strict on documentation, invoice format, and business purpose. VAT incurred on costs linked to TOMS supplies is not recoverable.

For reclaim mechanics, eligibility, documentation standards, and deadlines, go to VAT Reclaim page.

Antravia helps

Antravia supports travel businesses with:

• Greece VAT classification and rate analysis
• island VAT risk reviews
• TOMS margin modelling for Greek itineraries
• myDATA reporting readiness
• VAT registration and fixed establishment assessments
• DMC and MICE VAT reviews
• reclaim feasibility analysis
• identifying VAT leakage across island and mainland programmes

Not based in Greece but looking for Greek VAT Reclaim? Click here

Not sure where to start? Contact Antravia for a free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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