In the context of organizing and gathering all the important issues of the VAT Code, we created the book "Applications of VAT" in order to demonstrate through examples how the tax is applied.

This book is a user-friendly guide for managing the basic issues related to Value Added Tax, as it combines theory with the practical application of the law.

Specifically, our book follows thematically the same structure as the text of the law, including:

- the text of all articles of the law as they currently stand,
- over 160 answered questions based on legislation,
- in the sections of articles 8, 10, 11, 14, 30, 33, and 38, there are accounting entries related to intra-community transactions (receipts-deliveries) as well as imports, etc.,
- detailed completion of all forms (Periodic VAT Return, Intrastat Declaration, Summary Tables) with examples,
- complete alphabetical index.

The so-called Value Added Tax is an indirect tax imposed by the "Derived Law" of Community Law on the member states of the European Union. However, a similar tax exists in about 30 non-Community countries on various continents.

History of VAT in Greece

In order to achieve a unified harmonization in the indirect taxation of the EEC member states, in 1957 a special committee for tax harmonization was appointed by the Commission (European Commission) with Professor Neumark as its president. The Neumark Committee, as it came to be called, examined the practices up to that time worldwide and, after many discussions, proposed the abolition of all applied internal (national) cumulative turnover taxes and their replacement with a single tax, VAT, which was successfully applied at that time by France at every stage of value added in transactions.

The proposals of the Neumark Committee were eventually accepted and began to be implemented on April 11, 1967, with the issuance by the then Council of Ministers of the first two directives (directives), 62/227/EEC and 67/228/EEC, through which VAT was established as a common system of turnover tax in the member states. These also established the principles of VAT (objects-acts, taxable persons, rates, certificates, etc.). The introduction of VAT, based on the above, was gradually completed in 1973.

Later, 10 years after the issuance of the 2nd directive, on May 11, 1977, the 6th directive (77/388/EEC) was issued, which supplemented and completed practical gaps of the previous two by extending VAT to retail trade as well. This directive was supposed to come into effect on January 1, 1978, but only two member states, Belgium and the United Kingdom, had complied. Thus, the Council of Ministers, with the 7th directive (78/558/EEC), extended the implementation deadline for another year. Finally, the last member countries, Germany and Luxembourg, implemented VAT on January 1, 1980.

This 6th directive is the most important Community act by which VAT was initially regulated.

As a common tax system in the EU, but also for all the latest additions and modifications.

The uniform calculation of the tax by all member states as well as the calculation of a common percentage on it are the basic elements in the financing of the community budget, and this is why its implementation is closely monitored in the member states.

Introduction of VAT in Greece

In Greece, it was introduced on January 1, 1987, and its rate was 6% for popular consumption items, 18% for services, and 36% for luxury items. For a short period of time, its implementation caused disruption in the market. The first to pay the tax were the customers of entertainment centers who celebrated the New Year's Eve with a rate of 36%.

Today, VAT is defined by Law No. 2859 of 2000 (as announced in Government Gazette A' 248/07-11-2000 and according to its most recent revision) also as a type of indirect tax imposed on transactions throughout the Greek territory except for the area of Mount Athos and the areas subject to it.

Note: The articles of the VAT code (Law 2859/2000) are presented codified as they have been amended and in force after the adoption of Law 4591/2019 (12.02.2019).