The Greek Saga of the Non-Recovery of the VAT on Bad Debts Comes to an End

Abstract

The number of unpaid debts has risen dramatically in Greece over the last decade due to the economic crisis which has been looming upon the Greek market. This has made the VAT on such debts a significant burden for most of the businesses. The Greek VAT legislation as in force does not allow taxable persons to claim refund of the VAT on bad debts, which is ultimately borne by the businesses, jeopardizing their sustainability. In this article, the author discusses the recently issued Decision 355/2019 of the Greek Supreme Administrative Court, which clearly indicated the necessity for an amendment of the current legal framework regulating the recovery of VAT on non-collectable debts by ruling in favour of the taxable persons’ right to request such VAT and by interpreting the relevant legal provisions in light of ECJ case law.