Greece Tax Agency Clarifies Tax Treatment of Subsidies, Input VAT Deduction Rules

The Greek Independent Authority for Public Revenue Aug. 18 issued Circular No. E. 2059, clarifying the tax treatment of subsidies and the right to deduct input VAT related to them. The circular explains that: 1) subsidies directly connected to the price are included in the taxable base if they constitute total or partial consideration, and if they are paid to the supplier of goods or provider of services by a third party; 2) the deduction is provided to the extent that the goods and services are used to carry out taxable transactions; 3) the deductible tax is set at 100 ...