How VAT (FPA) Works in Greece (2026): Standard 24%, Reduced Rates and Aegean Island Exceptions
Greece levies FPA (Foros Prostithemenis Axias -- Value Added Tax) at three rates on the mainland in 2026: 24% standard on most goods and services, 13% reduced for food, medicines and hotel accommodation, and 6% super-reduced for books and certain other essentials. Businesses in many Aegean islands benefit from rates approximately 30% lower than the mainland equivalents. VAT-registered businesses file returns and remit FPA through AADE, the Greek Independent Authority for Public Revenue.
The three mainland FPA rates: 24%, 13% and 6%
Greece applies FPA (Foros Prostithemenis Axias -- Greek for Value Added Tax) at three main rates on the mainland in 2026: Standard rate (24%): the default rate applying to all goods and services unless a specific reduced rate or exemption is listed. This covers most professional and consulting services, consumer electronics, clothing, alcoholic beverages, and the majority of business-to-business services not otherwise categorised. Reduced rate (13%): applies to a defined list of goods and services including most food and non-alcoholic beverages for human consumption, hotel and accommodation services, agricultural products and livestock, passenger transport, and pharmaceutical products such as medicines. Super-reduced rate (6%): applies to a narrower list including books, newspapers and periodicals (printed and electronic), live theatre and concert tickets, and certain other specifically listed items. Confirm the precise categorisation of any specific supply with AADE before applying the 6% rate. FPA-exempt supplies also exist -- these include most financial services, insurance, healthcare and educational services provided by qualifying institutions. Exempt suppliers generally cannot recover input FPA on related costs. The authoritative list of what falls under each rate is set out in the Greek VAT Code and administered by AADE. When in doubt about the correct rate for a specific supply, consult the AADE website or a qualified FPA adviser.
Reduced rates for Aegean islands: approximately 30% lower than mainland
Certain Aegean islands in Greece benefit from FPA rates that are approximately 30% lower than the equivalent mainland rates. In practical terms this means: - Mainland standard 24% is approximately 17% on qualifying islands. - Mainland reduced 13% is approximately 9% on qualifying islands. - Mainland super-reduced 6% is approximately 4% on qualifying islands. These reductions do not apply to all Aegean islands equally and there are conditions -- for example, goods manufactured on the mainland and shipped to the islands may not automatically qualify for the island rate. The list of qualifying islands and the exact conditions for applying island rates can change. Important note for this calculator: the paycalceu.com calculator uses mainland FPA rates for Greece. If you conduct business on or from a qualifying Aegean island, actual FPA rates on your supplies may be lower than those shown. Always confirm the applicable island rate for your specific location and supply type with AADE before issuing invoices.
FPA registration: who must register and how
Most businesses that conduct taxable economic activity in Greece must register for FPA with AADE before making their first taxable supply. Greece does not operate a broad domestic turnover threshold exemption that allows small businesses to trade without FPA registration in the way that some other EU countries do -- businesses carrying on a taxable economic activity are generally required to register. Registration is done through the AADE TAXISnet portal, the main Greek tax online platform. Registration involves obtaining a TIN (Arithmos Forologikou Mitroou -- tax identification number, often referred to as AFM) if not already held, and then registering for FPA purposes. AADE may require supporting documents depending on the type of business and its legal form. If you are starting a business or professional activity in Greece, assume that FPA registration is required and verify with AADE or a qualified accountant before making your first taxable supply. Once registered, the business must issue FPA-compliant invoices for all taxable supplies, file periodic FPA returns, and remit net FPA to AADE. Voluntary deregistration or threshold-based exemptions for established businesses should be discussed with AADE or an FPA specialist, as the rules differ from some other EU member states.
How FPA works in practice: output tax, input tax and returns
FPA is a multi-stage consumption tax collected at each stage of the supply chain. As a registered business: Output FPA is the FPA you charge on your sales. You collect it from customers on behalf of the state and must remit it to AADE. It is not your revenue. Input FPA is the FPA you pay on your business purchases and costs. Subject to conditions, you can deduct input FPA as a credit against output FPA, provided the purchases are used for taxable business activities and are supported by valid FPA invoices. Net FPA due = output FPA minus recoverable input FPA for the period. If input FPA exceeds output FPA (common for businesses with large capital investment or significant exports), AADE may owe a refund -- though FPA refunds in Greece may take time and can be subject to audit. Filing frequency: FPA returns in Greece are typically filed monthly. Smaller businesses may qualify for quarterly filing; AADE assigns the filing period at registration. The return and payment are generally due by the last working day of the month following the reporting period, though AADE can adjust deadlines. The OSS scheme (One Stop Shop) is available for businesses selling digital services or goods to consumers in other EU member states. Under OSS, a Greek business can declare and pay FPA on EU cross-border consumer sales through a single return in Greece rather than registering in each country. Businesses with significant EU cross-border sales should explore OSS registration with AADE or a specialist. Always verify current filing deadlines, return formats and refund procedures with AADE.
FAQ
What is the standard VAT rate in Greece in 2026?
The standard FPA (VAT) rate in Greece in 2026 is 24% on the mainland. This applies to most goods and services unless the 13% reduced rate, the 6% super-reduced rate, or an exemption specifically applies. In certain Aegean islands the rates are approximately 30% lower than the mainland equivalents. Always verify the applicable rate for your specific supply type and location with AADE, the Greek Independent Authority for Public Revenue.
Which goods and services qualify for the 13% reduced FPA rate in Greece?
The 13% reduced FPA rate generally applies to most food and non-alcoholic beverages for human consumption, hotel and accommodation services, agricultural products, passenger transport, and pharmaceutical products such as medicines. The exact list is defined in the Greek VAT Code and administered by AADE. If you are unsure whether a specific good or service qualifies for the 13% rate, check with AADE or a qualified FPA adviser before issuing invoices at the reduced rate.
Do Aegean island businesses use different VAT rates than mainland Greece?
Yes. Many Aegean islands have FPA rates approximately 30% lower than the equivalent mainland rates. For example, the mainland standard rate of 24% is approximately 17% on qualifying islands. Not all islands qualify equally and conditions apply. The paycalceu.com calculator uses mainland rates for Greece. If your business is located on or supplies to a qualifying Aegean island, confirm the applicable rates with AADE before applying island rates to your invoices.
When must a business register for FPA in Greece?
Most businesses conducting taxable economic activity in Greece must register for FPA with AADE before making their first taxable supply. Unlike some EU countries, Greece does not have a broad domestic turnover threshold exemption for small businesses. Registration is done through the AADE TAXISnet portal. If you are starting a business or professional activity in Greece, verify the FPA registration obligation with AADE or a qualified accountant at the outset -- do not assume a turnover threshold allows you to trade without registering.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.