Businesses have until April 30, 2026, to act on past tax years involving real estate use—provided they wish to benefit from the Greek Independent Authority for Public Revenue’s (AADE) updated VAT framework for property. The new decision, AADE No. A.1046/2026, allows for the recalculation of VAT on properties with mixed or non-uniform usage—subject to specific conditions.
VAT Now Tied to Actual Space Usage
Under the new rules, VAT on real estate will no longer be determined by a single, company-wide calculation. Instead, it will be assessed based on how each part of a property is actually used. The decision explicitly states that VAT must be calculated per activity, proportionally to the square meters dedicated to each use—and excluding common areas.
This shift means businesses with mixed-use properties—such as office spaces partially rented out or buildings combining commercial and administrative functions—may now see a significantly different VAT outcome compared to the previous, more generalized approach.
Retroactive Application Is Possible
The decision permits retroactive application to prior tax years that remain open under the statute of limitations. However, AADE requires clear, separate accounting entries in the company’s books—documenting which expenses and which physical areas corresponded to each type of activity.
In such cases, a formal notification or application must be submitted to AADE no later than April 30, 2026.
In practice, this window primarily benefits businesses whose properties serve multiple purposes—and who can substantiate, with verifiable records, how each section was used. For them, the decision opens the door to a more precise, activity-based reassessment of VAT liabilities on real estate.