E-shop & E-commerce: What Are Your Tax Obligations?

Activity Code and Basic Tax Organisation

Operating an e-shop requires an appropriate Activity Code (usually KAD 47.91.71 for online retail), registration with GEMI for capital companies and registration with AADE. An important detail that is often overlooked: a simple post-office box cannot be declared as the registered office of a business that stores or distributes products — an actual business establishment is required.

VAT on E-shop Sales

E-shop sales are subject to 24% VAT, or the reduced 13% or 6% rate depending on the product category, just like sales from a physical shop. Businesses with very low turnover may opt for the special small-business exemption, provided that supplies of goods and services in the previous tax year did not exceed €10,000.

Sales to Customers in Other EU Countries: The OSS Scheme

If your e-shop sells to consumers in other EU countries, a special scheme applies. Up to €10,000 in annual sales to other Member States, you may continue to account for Greek VAT as normal. Above this threshold, registration for the VAT OSS (One Stop Shop) scheme is required, removing the need for separate VAT registration in every destination country.

Sales Outside the European Union

Sales to countries outside the EU, such as the United Kingdom or the United States, are treated differently. They are considered exports and are exempt from Greek VAT, provided that you hold the required export documentation, including proof of dispatch and customs documents where applicable. Without this documentation, the exemption may be challenged during an audit, resulting in VAT being imposed retrospectively.

myDATA and Electronic Invoicing for E-shops

Every receipt or invoice issued by the e-shop must be transmitted to AADE's myDATA in real time. Given the volume of orders, doing this manually is practically impossible. A technical API connection is required between the e-shop platform, such as WooCommerce or Shopify, and the accounting or commercial software, either through a certified electronic invoicing provider or AADE's free Timologio application. From 1 October 2026, mandatory electronic invoicing extends to all businesses, including e-shops.

Product Returns and Credit Invoices

Returns are part of daily life for every e-shop, but they require specific tax handling. When a customer returns a product, a credit invoice or credit receipt is issued and must also be transmitted to myDATA, reducing the declared income and corresponding VAT from the original transaction. Correct and timely credit documents are critical, as late or incomplete corrections create discrepancies that AADE's automated checks can easily identify.

Shipping Costs: How They Affect VAT

Shipping costs charged to the customer, whether separately or included in the price, generally follow the same VAT rate as the accompanying product because they are considered ancillary to the main transaction. Free shipping as a marketing practice does not alter the tax treatment; the cost is simply absorbed into the product price without a separate charge line.

Do Not Forget VIES for Facebook and Google Advertising

One detail is often missed: if you advertise through Meta, including Facebook and Instagram, or Google Ads, invoices for these services are usually issued by companies established in another EU country, such as Ireland. To avoid being unfairly charged double VAT on these expenses, your business must be registered with VIES.

Two Practical Examples

Example 1 — Sales within the EU: A Greek IKE e-shop sells mainly to Greek consumers, but in its first year also records €12,000 in sales to customers in France and Germany. Because sales to other EU Member States exceed the €10,000 threshold, the business must join VAT OSS for these sales, accounting for the VAT rate in each customer's country of residence through a single OSS return.

Example 2 — Sales outside the EU: The same e-shop also receives an €800 order from a customer in the United Kingdom. As this is a non-EU country, the sale is treated as an export and exempt from VAT, provided the business retains proof of dispatch, such as courier tracking or a customs document, showing that the product actually left the EU.

6 Practical Tax Compliance Steps for an E-shop

1. Choose the correct activity code and an actual business establishment from the outset to avoid issues during an AADE audit.
2. Monitor whether you are approaching the €10,000 threshold for EU sales so you can prepare for OSS registration in time.
3. Keep complete shipping documentation for every non-EU sale to secure the VAT exemption.
4. Ensure the e-shop is technically connected to myDATA before your order volume increases.
5. Organise a proper process for issuing credit documents for returns to avoid discrepancies during an audit.
6. Register with VIES early if you plan to advertise through Meta or Google Ads.