May 2026 Monthly Tax Briefing

May's Monthly Tax Briefing covers recent developments in tax legislation, including:

A.   Crypto‑Asset Transaction Audits
B.   Supplementary Tax Under Pillar 2
C.   Binding Tax Rulings 
D.   Amendments to the Penalties of Article 53 of the Tax Procedure Code 
E.   Violation for Accepting Cash Payments Exceeding €500
F.   Mandatory Electronic Payment for Transactions Exceeding €500
G.   Turnover‑Based Discounts Without Prior Notification

On 15 May 2026, the Hellenic Parliament adopted the New Law 5301/2026 (the Law) entitled 'Administrative Cooperation in the Field of Taxation – Transposition of Council Directive (EU) 2023/2226 of 17 October 2023 and Council Directive EU 2025/872 of 14 April 2025 Amending Directive 2011/16/EU on Administrative Cooperation in the Field of Taxation'.

An overview of the key changes introduced by the Law follows.

A. Crypto Asset Transaction Audits

A mandatory automatic exchange of information is established for Reporting Crypto Asset Service Providers, meaning any services or platforms that intermediate or facilitate transactions related to crypto assets.

The penalties applicable to Reporting Crypto Asset Service Providers are as follows:

1. €100 for the late submission of information for each Reportable Transaction;
2. €300 for failure to submit, or for submitting incomplete or inaccurate information, per Reportable Transaction;
3. €1k for failure to respond within the prescribed deadline to a request by the Tax Administration for the provision, supplementation or correction of information/data, per Reportable Transaction;
4. €2.5k for lack of cooperation during an audit or when non-compliance with reporting and due diligence obligations are identified; and
5. €5k for non-compliance with information reporting obligations relating to each Reportable Transaction, following an audit and within the relevant deadline.
   The total amount of penalties per audit may not exceed €500k, while for late submission violations specifically, the maximum cap is €10k per reporting year. 
   In the event of repeated non-compliance, penalties are imposed at double the initial amount, and in the case of a subsequent recurrence, at four times the original penalty.

B. Supplementary Tax Under Pillar 2

The supplementary tax introduced by Law 5100/2024 is not deductible as a business expense.

The provision expressly classifies as non‑deductible the top‑up tax associated with the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR), a framework primarily relevant to large multinational groups.
These rules form part of the 15% global minimum taxation standard and govern the filing and automatic exchange of information relating to Supplementary Tax Information Returns.

The legislation also specifies the manner in which such returns must be submitted, organized and exchanged between the competent tax authorities.

C. Binding Tax Rulings

Greece introduces the institution of the Binding Tax Ruling (BTR). Any natural person, legal person or legal entity may request from the Tax Administration an advance interpretation of the applicable legislation regarding specific tax or customs matters that have not yet occurred.

The BTR is issued by the Governor of the Independent Authority for Public Revenue (AADE) within 150 days, or sooner upon a request for expedited processing and is binding on the Tax Administration.

For an application to be admissible, a minimum fee of €3.5k must be paid. The total fee ranges from €10k to €50k, depending on:

1. the complexity of the matter;
2. the size of the enterprise; and
3. whether expedited treatment is requested.

The following matters are excluded from the scope of BTRs:

1. advance pricing agreements (APAs) on intra group transfer pricing;
2. issues requiring the application of foreign law; and
3. cases already pending before the tax authorities or courts.

The provision enters into force on 1 October 2026. Binding Tax Rulings will be published in anonymized form on the AADE website.

D. Amendments to the Penalties of Article 53 of the Tax Procedure Code

Under the newly introduced paragraph 1A and the amendment to paragraph 2 of Article 53 of the Tax Procedure Code (TPC), initial VAT returns with no VAT payable which are filed late are now expressly subject to a €100 penalty.

The new provision replaces the previously applicable €250/€500 penalty under Decision E.2059/2025 and applies retroactively from 19 April 2024. The €100 penalty for late filings under the special VAT regimes¹ is abolished retroactively. No penalty is imposed for late initial or amended returns relating to:

1. withholding taxes (except gambling winnings); and
2. indirect taxes/fees/contributions (except VAT and real estate transfer tax), provided that the tax due does not exceed €100.

The new rules for VAT and withholding taxes apply from 19 April 2024.
Penalty assessments already issued are cancelled or amended and amounts not legally due are written off, offset or refunded if already collected.

Penalties under paragraphs 1, 1A, 2 and 5 of Article 53 are not imposed on late returns filed on behalf of a minor or returns filed by an adult for obligations relating to a tax year during which they were a minor. The exemption also covers the parent’s income tax return, to the extent it includes income of a minor child attributed to the parent under Article 11(4) of the Income Tax Code.

E. Violation for Accepting Cash Payments Exceeding €500

The provision revises the infringement relating to the acceptance of cash payments. 
The penalty—equal to twice the amount paid in cash—now applies to the entire value of the underlying transaction for the sale of goods or the provision of services amounting to €500 or more, rather than to each individual tax document issued.

F. Mandatory Electronic Payment for Transactions Exceeding €500

The rule now applies to transactions—rather than to individual tax documents—relating to the sale of goods or the provision of services to private individuals, with a total value of €500 or more.

Such transactions must be settled exclusively by card or another electronic means of payment, including bank transfer, electronic wallet or similar digital payment instruments.

The new rule ensures that compliance is assessed based on the overall value of the transaction, preventing circumvention through the issuance of multiple invoices below the threshold.

G. Turnover‑Based Discounts Without Prior Notification

The provision definitively resolves a long standing issue concerning turnover based discounts (rebates).

In cases where such discounts were granted without complying with the requirement of prior notification to the seller’s tax office four months in advance, the lack of prior notification shall no longer constitute grounds for rejecting the deductibility or recognition of the discounts.

The rule applies to all cases for which no final corrective tax assessment has been issued, as well as to pending cases before the Dispute Resolution Directorate (DRD), the Administrative Courts or the Hellenic Council of State.

As a result, a significant volume of tax disputes is effectively closed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.