Greece: Guidance on VAT treatment of over the counter derivatives

Clarifications on VAT treatment of revenues from certain over the counter derivative products

Clarifications on VAT treatment of revenues from certain OTC derivative products

Circulars E.2066/2023 and E.2068/2023 provide clarifications on the value added tax (VAT) treatment of revenues from certain over the counter (OTC) derivative products.

  • Circular E.2066/2023 clarifies that any revenues arising from contracts for difference (CFDs) is subject to VAT at the rate of 24% because CFDs are derivatives that are not traded on a stock market (but are OTC) and are utilized for hedging risks, which is consistent with the treatment under EU and national law in which VAT exemption is only available for derivatives traded on a stock market, as well as the established case law of the Court of Justice for the European Union (CJEU) on the restrictive interpretation of tax exemptions.
  • Circular E.2068/2023 clarifies that the supply of services and respective income therefrom related to transactions concerning OTC derivatives, when at least one of the contracting parties is a credit institution or an Investment Services Company (AEPEY), is exempt from VAT under Article 22(1)(k), (kd) and (ke) of the VAT Code. In addition, when one of the parties to a CFD is established outside Greece (within or outside the EU), the provisions of Article 14 of the VAT Code regarding the place of supply and consequently the place of taxation of this service, must be taken into consideration.

Read a December 2023 report prepared by the KPMG member firm in Greece


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