Electronic invoice in Greece

In Greece, electronic invoicing is an important part of the national tax and financial system and is regulated by various legal and regulatory frameworks. Greece has introduced electronic invoices for both the domestic market and Greek companies operating internationally, aiming to simplify tax collection and prevent tax evasion. Here are the key legal foundations:

1. Greek VAT Law (Νόμος 2859/2000)

The Greek VAT law (Nómos 2859/2000) provides the legal basis for the recognition and requirements for electronic invoices in Greece. It specifically regulates the issuance, transmission, and archiving of invoices in relation to VAT (ΦΠΑ – Φόρος Προστιθέμενης Αξίας):

• Article 12 of the law states that an invoice must always be issued when goods or services are provided, and that this invoice can also be issued electronically, as long as it meets the requirements for authenticity and integrity.
• Articles 38 and 39 address the requirements that electronic invoices must fulfill, particularly concerning tax recognition and transmission to the Greek tax authority (A.A.D.E. – Ανεξάρτητη Αρχή Δημοσίων Εσόδων).

2. Ministerial Circular 1120/2018

A significant step towards the digitalization of invoice exchange in Greece was made with Ministerial Circular 1120/2018, which clarifies the requirements and procedures for electronic invoicing for Greek businesses:

• This regulation introduced the obligation for electronic invoicing for businesses entering into contracts with public entities, particularly in the B2G (Business-to-Government) sector.
• It also sets the framework for mandatory electronic submission of invoices by businesses in the public procurement and public tender sectors.

3. Law 4575/2018 and the Introduction of e-Invoices in the Public Sector

In 2018, Law 4575/2018 came into effect, further strengthening electronic invoicing in the public sector (B2G). This law implements EU Directive 2014/55/EU, which mandates electronic invoicing for public procurement:

• According to Law 4575/2018, all public entities in Greece are required to accept electronic invoices created in accordance with Peppol standards (Pan-European Public Procurement OnLine).
• Companies that execute public contracts must now submit their invoices in the e-invoice format, which is validated and processed via a central system operated by the Greek Ministry of Finance (AADE).

4. EU Directive 2014/55/EU on Electronic Invoicing in the Public Sector

Greece has fully implemented the European Directive 2014/55/EU, which concerns mandatory electronic invoicing in the public sector. The directive aims to optimize the public administration procurement process and reduce bureaucracy by standardizing the transmission and processing of invoices:

• Peppol (Pan-European Public Procurement OnLine) is the underlying standard for electronic invoicing in the public sector. Greece uses the Peppol infrastructure to ensure that all public entities can receive and process electronic invoices in compliance with the requirements set by the directive.

5. A.A.D.E. – Electronic Invoicing Platform

Greece has developed its own digital platform for electronic invoicing, operated by the A.A.D.E. (Ανεξάρτητη Αρχή Δημοσίων Εσόδων), the Greek tax authority. This platform serves as the central system for the transmission and archiving of electronic invoices, especially in the public procurement sector:

• All electronic invoices submitted to public institutions must use the Peppol format and be uploaded and validated through the A.A.D.E. system.
• It is also expected that businesses dealing with the public sector in Greece submit all their invoices according to the Peppol standards.

6. Electronic Signatures and Security Requirements

For electronic invoicing in Greece, the authenticity and integrity of invoices are crucial. This is ensured through the use of electronic signatures and other security measures:

• Electronic signatures can be used to verify the authenticity of an invoice. These signatures must comply with Greek standards as well as the requirements of the EU eIDAS regulation.
• EDI (Electronic Data Interchange) protocols can also be used to ensure the integrity of the transmitted invoices.

7. Archiving Obligations

The archiving of electronic invoices is governed by Greek tax regulations. Businesses are required to keep electronic invoices for at least 5 years. The invoices must be archived in a manner that ensures their integrity and accessibility for tax audits:

• Invoices may be archived electronically as long as they are always readable and available.

8. Penalties for Non-Compliance

Businesses that violate the electronic invoicing regulations may face fines and penalties from the Greek tax authority (A.A.D.E.). The penalties are particularly related to breaches of transmission and archiving obligations.

Summary of the Legal Foundations in Greece:

• Greek VAT Law (Nómos 2859/2000): Electronic invoices are legally valid if they meet the requirements for authenticity and integrity.
• Ministerial Circular 1120/2018: Introduction of the obligation for electronic invoicing for businesses dealing with public entities.
• Law 4575/2018: Implementation of the EU Directive 2014/55/EU on mandatory electronic invoicing in the public sector.
• Peppol Standard: Electronic invoices in the public sector must comply with Peppol standards.
• A.A.D.E. Platform: Central platform of the Greek tax authority that ensures the transmission and archiving of electronic invoices.
• Electronic Signatures: Qualified electronic signatures (QES) or EDI protocols are used to ensure the authenticity and integrity of invoices.
• Archiving Obligations: Electronic invoices must be archived for at least 5 years.

Conclusion:

In Greece, electronic invoicing is an integral part of the tax system, especially in the public sector. Businesses dealing with public entities must submit their invoices electronically in the Peppol format. The Greek tax authority (A.A.D.E.) provides a central platform through which invoices are validated and archived. Companies must ensure that they meet the requirements for electronic signatures, archiving, and format to avoid tax issues and penalties.