VAT treatment on crowdfunding in Greece (22 January 2016)
On 14 January 2016, the Greek Public Revenue Authority issued a Document providing clarifications regarding the supply of goods through a reward-based crowdfunding campaign.
The document clarifies that:
- in reward-based crowdfunding campaigns, the contribution is typically given by the contributor before any goods or services are supplied in exchange. The reward-based crowdfunding constitutes a taxable transaction (article 2.1.a of the Greek VAT Code) and the contribution may be regarded as a payment made on account of those goods or services on which VAT shall become chargeable upon receipt of the payment;
- reward-based crowdfunding constitutes a taxable transaction subject to Greek VAT, even if the open market value of the goods or services supplied by the entrepreneur to the contributor may be lower than the amount of the contribution received. Furthermore, there should be a direct link between the supply of goods or services and its corresponding consideration collected by way of crowdfunding and the entrepreneur should be a taxable person acting as such; and
- the taxable amount does not include the fee that the reward-based crowdfunding contributor paid to the company which organizes the crowdfunding (e.g. the website).
Source: Vassilis Dafnomilis (IBFD)
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