In public consultation, the AADE the classification of business activity code numbers (KAD) into categories based on whether the relevant activities are subject to VAT or not, in order to fully automate (end-to-end) the process of declaring and amending them.
The aim of the new digital service that will be made available to companies from autumn 2024 is to automatically and immediately declare and amend the KAD through a special application on the myAADE digital portal (myaade.gov.gr), without forwarding the respective management requests by an AADE employee.
At the same time, the new application will provide facilitation, with informative messages that will guide the company in choosing the appropriate KAD.
In particular, KADs were classified into the following six (6) categories:
1) Subject to VAT (activities with VAT status that imply the obligation to submit a Φ2 TAXIS declaration in each tax period),
2) Not subject to VAT (e.g. companies holding shares in other companies – holdings),
3) Potentially not subject to VAT (Public administration and defence – compulsory social security, NACE class 84),
4) Normally exempt from VAT (activities no. 22 of the VAT Code, such as the provision of postal services by the Universal Service Provider, activities of national Radio and Television networks, refundable contributions imposed by Health Improvement Organizations – OEB for the provision of irrigation water, provision of hospital and medical care and diagnostic services),
5) Possibly exempt from VAT (activities no. 22 VAT Code). These are KAD that may be exempt from VAT under certain conditions. That is, their exemption depends on the facts of each case (e.g. medical operations of a plastic surgeon that are exempt from VAT, when it comes to burn restoration, but taxable when they are of an aesthetic nature),
6) Exempt from VAT (cases covered by Article 44 of the VAT Code, i.e. delivery, intra-Community acquisition or import from third countries of manufactured tobacco).
Depending on the inclusion of the KAD in one of these categories, the inclusion or exemption from VAT:
- or it will be default with no possibility of change (categories 1, 2 and 6)
- or it must be chosen by the company based on the conditions of the activity (categories 3, 4 and 5).
The purpose of the consultation is to provide feedback from companies and professionals on the categorization of CPAs performed by AADE services for VAT purposes. This categorization will be incorporated into a relevant AADE decision after the consultation is completed.
The process with the classification of KADs based on their VAT liability is available for public consultation on the official AADE website under the heading Advertisements > Consultation until 09/06/2024.
AADE particularly draws the attention of those interested in KAD to the fact that its services have been classified as subject to VAT, since with the order of the respective application the VAT liability will be automatic without the possibility of change.
Invites all interested parties to send comments or suggestions to the email address (email protected) .