Greece: Clarification of VAT exemption for telemedicine services; special method of input VAT deduction on immovable property
Circular 2008/2026 and Decision 1046/2026
The Independent Authority for Public Revenue clarified via Circular 2008/2026 that medical care services supplied by physicians or primary healthcare entities are exempt from VAT when they pursue a therapeutic purpose, regardless of whether they are provided in person or via telemedicine.
The exemption applies only to services aimed at diagnosis, treatment, prevention, or alleviation of disease and does not include the provision of advisory services which, due to their general nature, do not contribute to the above objectives.
The Independent Authority for Public Revenue also issued Decision 1046/2026 which introduced a special method for input VAT deduction on immovable property used for both taxable and non‑taxable activities, as an exception to the standard pro‑rata rules.
Under the method, input VAT is deductible based on the actual use of each part of the property, primarily by reference to square meters, provided that separate accounts are maintained and prior approval is obtained from the tax authorities. The method applies from the year of application, allows retroactive use for non‑time‑barred years, and requires applications for retroactive deduction to be submitted by April 30, 2026.
For more information, contact a KPMG tax professional in Greece:
Antonia Ariel Manika | amanika@cpalaw.gr