VAT
VAT Refunds for Businesses: A Complete Process Guide
Published · 7 min read · NS Accounting & Tax Office
Written by the NSTAX team of accountants and tax advisers
When a business has more input VAT (from purchases or investments) than output VAT (from sales), a credit balance arises that may be reclaimed from the tax authority. The process, however, has specific steps, supporting documents and deadlines that must be followed carefully. In this article, the NSTAX team explains step by step how VAT refunds work for businesses in Greece.
For a fuller overview, read what applies to VAT changes, our guide to myDATA and electronic invoicing, and NSTAX business services.
When a Right to a VAT Refund Arises
A refund entitlement usually arises when a business makes major investments (such as purchasing equipment or property), mainly carries out intra-community supplies or exports (which are VAT-exempt but allow input VAT deductions), or applies a reduced output rate while purchases are charged at the standard rate.
Calculation Example
Consider a business that, during one tax year:
- Paid €45,000 in input VAT (purchases and investments)
- Collected €30,000 in output VAT (sales)
The €15,000 difference is a VAT credit balance. The business may either carry it forward as a credit to the next tax period or request a refund, provided it meets the relevant conditions.
VAT Refund Process Step by Step
- File a VAT return showing a credit balance through the myAADE electronic platform
- Submit a refund request (credit return) with the supporting documents required for the cause of the credit balance
- Automated or sample-based review by AADE, which may include cross-checking invoices, export documents and bank records
- Approval and payment of the amount, or a request for additional documents where a detailed review is required
Which Supporting Documents Are Usually Required
The supporting documents vary significantly depending on the cause of the credit balance. Export businesses usually need export declarations, proof of exit and shipping documents. Investments in fixed equipment require the relevant purchase invoices and proof of payment. Providing a complete file with the first submission significantly speeds up the process.
5 Practical Tips for a Faster Refund
1. Submit complete supporting documents from the outset
Incomplete documentation is the most common cause of delay — AADE has intensified its cross-checks.
2. Keep an organised file for each transaction
For export businesses in particular, immediate access to export declarations and shipping documents is critical.
3. Avoid fictitious or undocumented invoices
Modern digital audits easily identify inconsistencies, with serious penalties where an infringement is found.
4. Track your application status online
The myAADE platform reports the progress of the application — checking regularly helps you respond quickly to any request for additional information.
5. Consult an accountant before filing complex cases
For intra-community transactions or large amounts, a preliminary expert assessment significantly reduces the risk of rejection or delay.
Frequently asked questions
How long does a VAT refund take?
Can I carry the credit balance forward instead of requesting a refund?
What happens if my application is rejected?
Do different rules apply to a VAT refund from another EU country?
Are You Expecting a VAT Refund for Your Business?
NSTAX, an accounting and tax advisory firm in Athens, handles the complete preparation of the file and monitors VAT refund applications, reducing the risk of delays or rejection. Contact us to review your case.
The VAT refund process and supporting documents may vary by case and may change through newer AADE decisions. Contact us for an accurate assessment of your business.