The legal framework for the return of the Special Consumption Tax (SCT) with regard to the so-called “agricultural oil” (motor diesel) was established by a Joint Ministerial Decision by the Deputy Minister of National Economy and Finance, Mr. Haris Theoharis and the Minister of Rural Development and of Food, Mr. Lefteris Avgenakis.

In particular, they are determined in detail with the KYA the terms, conditions as well as the whole process which henceforth governs the refund process of the Excise Duty (Excise Tax) for oil which is used exclusively for agriculture and the rural sector. The same decision also regulates the possibility of advance payment of a percentage on the entitled refund amounts, the checks of individual cases, etc.

It is emphasized that the KYA for agricultural oil provides, in principle, that the amount of refund of the tax that farmers are entitled to is inalienable and non-confiscatable by the Greek State or any third party. It goes without saying that the ministerial decision concerns farmers who wish to exercise the right to return the tax on agricultural oil.

Commenting on the issuance of the Joint Ministerial Decision, the Deputy Minister of National Economy and Finance Mr. Haris Theoharis stated that “this decision is yet another practical and key proof that the Government places the protection and strengthening of farmers’ income as an absolute priority. With the regulation we are introducing, we are helping farmers cope with the increase in operating costs to produce their products due to the increase in the price of diesel. Obviously the phenomenon of price hikes is international, but the Government is doing everything it can to relieve the people of the primary sector from the extra burdens. I should also underline that, alongside the establishment of the advance payment, direct support to farmers, especially those who had suffered damage from natural disasters in their crops, is being achieved to a large extent.”

On the occasion of the issuance of the Joint Ministerial Decision, the Minister of Rural Development and Food, Lefteris Avgenakis, said: “With this decision, the government implements yet another commitment to farmers. We are consistent in our announcements and that is why our relationship with Greek producers is governed by trust. Farmers know that the government of Kyriakos Mitsotakis will do everything possible to support them and reduce production costs, without jeopardizing fiscal stability. As they also know that the prime minister’s political decision is to support the primary sector in every way, as it is a key pillar of support for the Greek economy and a factor in ensuring social cohesion”.

In detail, this Joint Decision regulates the following:

  • The criteria on the basis of which someone is judged as a beneficiary for the return and advance payment of the social security tax.
  • The criteria for determining the quantities of motor oil for which the VAT refund is calculated, as well as the calculation of the VAT refund and advance payment.
  • The procedure for granting an advance payment and refund of the tax return, the time of granting the advance payment and the competent services for granting a payment advance and refund of the tax return.
  • The control of the legal use of motor oil exclusively in agriculture for which a VAT refund is granted.
  • In addition, an Appendix is ​​listed in the text of the KYA in which the maximum quantities of motor oil for the year 2023 are listed.

Briefly, as beneficiaries of the refund of the diesel fuel tax for engines, which is used exclusively in agriculture, are the natural persons/producers who have submitted a Single Support Application (SSP) for the years 2023 and 2024, have been registered in the Register of Farmers and of Agricultural Holdings (MAAE) from 1 January 2024 until 31 October 2024, and have been assigned the status of “professional farmer” or “professional farmer as a new entrant in the agricultural sector”.

To avoid return from the producers of the advance payment with the process of the amounts unduly paid, the producers, who will not submit a Single Aid Application (EAA) for the year 2024, or do not intend to be registered in the Register of Farmers and Agricultural Holdings (MAAE) from January 1 2024 until October 31, 2024, are required to submit a declaration to the MAAE, until 03-15-2024. This declaration states that the producer does not wish to receive an advance payment of the specific tax.

Based on the provisions of the KYA, the granting of the advance payment of the EPF is carried out until 1-4-2024 with the corresponding application of the terms and conditions defined in the relevant paragraphs. The competent service for the return of the EFK for agricultural oil is the General Directorate of Electronic Government (GDILED) of the Independent Public Revenue Authority (AADE).