Achaia has vineyards, olive groves, citrus, livestock and many producers who combine farming with a second job. The tax position of a farmer follows its own rules, and choosing the wrong regime can either cost you money or bury you in unnecessary paperwork.
Special or normal VAT regime
Under the special regime a farmer does not file periodic VAT returns. Instead, a flat-rate refund is received based on the value of the products delivered, claimed once a year.
Under the normal regime you issue invoices, keep books, file VAT returns and can deduct the VAT on your expenses.
When the normal regime is worth it
As a rule, the larger your VAT-bearing expenses, the more attractive the normal regime becomes. Consider it if you:
- have bought or plan to buy machinery, equipment or installations
- have steady costs for fertilisers, plant protection products, fuel and contract work
- sell to businesses that require an invoice
Moving from one regime to the other follows a set procedure and deadlines, so it cannot be done at any point during the year.
Subsidies and support payments
Agricultural support payments are not all treated the same way. Different rules apply to basic payments, to compensatory allowances, to investment aid and to compensation from the agricultural insurance organisation. The amount that lands in your bank account is not always taxed in the same way, so give your accountant the detailed payment statement, not just the total.
What to keep all year
- sales invoices or settlement statements from a cooperative or trader
- purchase and expense documents issued to your tax number
- your subsidy application and the detailed payment statements
- leases for farmland, especially if you cultivate land you do not own
- records for seasonal labour, with the work properly declared
Social security and other obligations
A farmer’s contributions depend on the category they have selected. If you are also an employee or have another activity, the picture changes and it is worth checking that you are not paying twice. Exemptions from the trade levy have been introduced for farmers, so check what applies to your own case.
Common mistakes
- purchases issued in the name of a spouse or child, which cannot be used
- documents that reach the accountant after the year has been closed
- subsidies declared as a single total, without separating the categories
- undeclared labour during the harvest
If you farm in Achaia and want to see what suits you, contact us. See also our services.
For step-by-step instructions on the AADE and EFKA platforms, see our Useful guides.
Frequently asked questions
Can I switch from the special to the normal VAT regime at any time?
The change follows a specific procedure and deadlines. Ask your accountant before the end of the financial year, not after.
Are agricultural subsidies taxed?
It depends on the type and the amount of the payment. That is why the detailed payment statement is needed, not just the total figure.
I farm land that belongs to someone else. What do I need?
Valid leases for the plots, since they are required both for support payments and in an inspection.
Do farmers pay the trade levy?
Exemptions have been introduced for farmers. Check what applies for the specific year and for your category.