Grants of 445 million euros for the digitization of small and medium enterprises – Beneficiaries, amounts and eligible costs

By Gogos Katseli

Aid program amounting to 445 million euros for the digitization of small and medium enterprises announced the Ministries of Finance and Digital Governance in a press conference they gave earlier, noting that the platform has already been put into productive operation https://digitalsme.gov.gr for the applications of the interested parties in the action “Digital Transformation of Small and Medium Enterprises”.

The action, implemented by the Information Society M.A.E. (supervised body of the Ministry of Digital Government), concerns the enhancement of the digital maturity of the small and medium enterprises (SMEs) of the country, with the aim of modernizing their productive, commercial and administrative operation.

By @Skylakakis We presented the action “Digital Transformation of Small and Medium Enterprises” through https://t.co/ELhO1IkOGy. We enable businesses to innovate and grow by gaining access to digital tools. @ktpae https://t.co/M5Bnaq9l1U pic.twitter.com/tegbAP3Tsx

– Kyriakos Pierrakakis (@Pierrakakis) June 27, 2022

Under the program will be implemented investments in technologies and services that promote the digitization of small and medium-sized enterprises, and specifically in: electronic payments, e-sales and e-invoicing applications, digital advertising tools, teleworking systems, business analytics, digital skills upgrades, data backup and disaster recovery services, artificial intelligence, internet of things, integrated solutions for contactless service, cybersecurity systems, cloud computing infrastructure and services, models and software of industrial data platforms, upgrade of cash registers and POS ecosystem.

Beneficiaries

The Program strengthens existing private companies engaged in economic activity, for which the following conditions are met cumulatively, including:

1. They have their registered office or branch in Greece with Greek VAT number.

2. They are active on the date of submission of the application for funding by the program.

3. They have been established before 01.01.2022.

4. They constitute a legal entity (Societe Anonyme, Limited Liability Company, General Partnership or Limited Liability Company, IKE, Individual Enterprise, Social Cooperative Enterprise, Cooperative) or Individual Enterprise and keep haplographic or bibliographic books.

The action is implemented by the Information Society MAE (supervised body of the Ministry of Digital Government), according to what is defined in a joint decision of the Minister of Digital Government and the Deputy Minister of Finance.

The action to support small and medium enterprises, for the purchase / utilization of digital products and services and their general support for their digital transformation, is divided into three sub-State Aid programs:

• Program I: “Digital Media Tools”

• Program II: “Development of Digital Products and Services”

• Program III: “Digital Transactions”

1. The program “Digital Media Tools”amounting to 180 million euros, provides vouchers from 900-20,000 euros, depending on the size of the business, which will be available for acquisition -through the purchase or lease- of new digital products and servicesin order to enhance the digital maturity of small and medium enterprises (SMEs) in the country, through the use of various digital tools.

According to the relevant JMC, small and medium-sized enterprises are divided into eight categories depending on the staff employed and will receive the aid as follows:
• up to five employees up to 900 euros (with a maximum eligible cost of 1,000 euros),
• from 5 to 10 employees up to 1,800 euros (with a maximum eligible cost of 2,000 euros)
• from 10 to 18 employees 3,600 euros (maximum eligible cost 4,000 euros)
• from 18 to 25 employees 5,400 euros (maximum eligible cost 6,000 euros)
• from 25 to 32 employees 9,000 euros (eligible cost 10,000 euros)
• from 32 to 40 employees 10,800 euros (eligible cost 12,000 euros)
• from 40 to 50 employees 13,500 euros (eligible cost up to 15,000 euros)
• from 50 to 250 employees 18,000 euros (eligible cost up to 20,000 euros).

It is worth noting that each category of business will have its own “piggy bank” so that the money can be used by all companies. Thus, 90 million euros will be channeled to companies with up to 10 employees, 40 million euros to those with 10 to 25 employees and 30 million euros to SMEs with staff from 25 to 40 people.

2. Through the program “Development of Digital Products and Services”with a budget of EUR 100 million, will to subsidize digital investments, in the form of a grant of € 200,000 to € 2 million, for the development of infrastructure and cloud services.

In terms of eligible costs:
-These of Industrial Research are supported at a rate of 70% for small enterprises and at a rate of 60% for medium-sized enterprises.
-Experimental Development is supported at a rate of 45% for small and 35% for medium-sized enterprises.
The elaboration of the Feasibility Study is supported at a rate of 70% for small enterprises and at a rate of 60% for medium-sized enterprises.
-Protection of the generated knowledge is enhanced by 50%, both for small and medium enterprises.
-Participation in trade fairs are increased by 50%, both for small and medium enterprises.
– Procedural and Organizational Innovation are supported at a rate of 50%, both for small and medium enterprises.

3. With the “Digital Transactions” program, amounting to 165 million euros, The adoption of modern digital tools with support from 150-350 euros is strengthened supporting the processes of invoicing, issuing tax documents and making electronic payments.

Of the 162, 44 million euros, which will also be given through vouchers, will be allocated as follows:
• € 15 million for EFT / POS replacement costs. The aid concerns up to two EFT / POS per company for purchase or lease of 3 years, with the maximum aid amounting to 150 euros
• € 20 million for the cost of purchasing car billing equipment (tablet + thermal printer). The aid will be given up to the declared number of trucks of the company for car invoicing and up to 1,125 euros per truck
• 33.21 million euros for the provision of electronic invoicing services for up to three years. The aid will reach 300 euros per company.
• 37 million euros for the upgrade of Tax Cash Registers (FTM), the Autonomous Financial Units (ADIME) and their interconnection with POS. These upgrades can reach the maximum number of Electronic Tax Mechanism (FIM) of each company and the aid given is 112.5 euros per FIM
• 45 million euros for replacement costs of Special Tax Mechanisms for Marking Data (EAFDSS), with a maximum replacement limit in each company, the already declared EAFDSS number. The aid amounts to up to 350 euros per EAFDSS.
• 11.73 million euros for costs of replacement of old FIM standards with a maximum number for each company the number of already declared FIM. For each FIM the aid is 150 euros.

The Minister of State and Digital Governance Kyriakos Pierrakakissaid: «When the Prime Minister, Kyriakos Mitsotakis, presented the “Greece 2.0” Plan to the President of the Commission a year ago, we were convinced that Greece, with the support of the Recovery Fund resources, could change its model. With a solid strategy and smart leverage of the Recovery Fund, the creativity of Greeks is highlighted and strengthened in most aspects of economic activity. “At the ‘threshold’ of the Fourth Industrial Revolution, companies are leaning to acquire innovative tools and to be at the forefront of the modern international environment.”

The Deputy Minister of Finance Theodoros Skylakakis, pointed out: «The digital transformation of small and medium enterprises is one of the most emblematic actions implemented with the resources of the National Plan for Recovery and Sustainability “Greece 2.0”. The three programs that make it up, and opened for submission, have a total budget of about 445 million euros, while the companies that will benefit from the initiative will exceed 200,000. “Once again, it proves, with deeds, that” Greece 2.0 “is a financial tool that is addressed to many and supports small and medium-sized businesses.”

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