The AADE puts the classification of KAD into categories in a public consultationbased on whether or not the relevant activities are subject to VAT, with the aim of fully (end-to-end) automating the process of declaring and changing Activity Codes (CAID) for businesses.

The goal of the new digital service that will be provided to businesses starting this autumn is to make the declaration and change of the KAD automatically and immediately, through a special application on the digital portal myAADE (myaade.gov.gr), without routing the relevant requests for management by an employee of AADE. At the same time, the new application will provide facilitation, with informative messages that will guide the company in choosing the right KAD.

In particular, the KAD have been classified into the following six categories:

1) Subject to VAT (activities with VAT status which entails the obligation to submit a Φ2 TAXIS declaration in each tax period),

2) Not subject to VAT (e.g. companies holding shares in other companies holding companies),

3) Potentially not subject to VAT (Public administration and defence-compulsory social security, NACE class 84),

4) Usually Exempt from VAT (activities no. 22 VAT Code, such as the provision of postal services by the Universal Service Provider, activities of the national Radio and Television networks, reimbursable contributions imposed by the Organizations of Sanitary Improvements – OEB for the supply of irrigation water, provision hospital and medical care and diagnosis services),

5) Possibly Exempt from VAT (activities no. 22 VAT Code). These are KAD that may be exempt from VAT under conditions. In other words, their exemption depends on the facts of each case (e.g. medical operations of a plastic surgeon that are exempt from VAT, when it comes to burn restoration, but taxable when they are of an aesthetic nature),

6) Exempt from VAT (cases of art. 44 VAT Code, i.e. delivery, intra-Community acquisition or import from third countries of manufactured tobacco).

Depending on the inclusion of the KAD in any of the above categories, the inclusion or exemption from VAT:

  • or it will be default without possibility of change (categories 1, 2 and 6)
  • or it should be chosen by the company based on the conditions of the activity (categories 3, 4 and 5).

The aim of the consultation is to provide feedback from businesses and professionals regarding the categorization of the CPAs carried out by the AADE services for VAT purposes. This categorization will be incorporated into a relevant decision of the AADE after the end of the consultation.

The file with the classification of KAD based on their subjection to VAT is put up for public consultation on the official website of AADE under the route Announcements > Consultation until 6/9/2024. With the AADE particularly drawing the attention of those interested in the KADs that the AADE services have classified as subject to VAT, as with the commissioning of the relevant application, the subjection to VAT will take place automatically without the possibility of change. It also invites anyone interested to submit comments or suggestions to the email address [email protected].