The KAD is the code that describes your business activity. It looks like a formality, but in practice it determines a great deal, from your VAT rate to whether you can enter a funding programme.
What the activity code affects
- the type of books and the obligations of the business
- the VAT rate that applies
- eligibility for funding and employment programmes
- licensing, where the activity requires it
- the social security treatment and certain special rules
That is why we do not pick a code that is “roughly related”.
Main and secondary codes
Every business has one main code, the one matching the largest share of its income, and can hold as many secondary codes as it needs. The main code can change if the picture of your income changes permanently.
When you need to add or change one
- you are starting a new activity, even a small one
- you begin selling online while previously you only sold in the shop
- you add services not covered by your existing code
- you stop an activity and no longer carry it out
The change is declared to the tax authority within a deadline from the start of the new activity. Filing late carries a penalty, which is small compared with the mess created by an invoice issued for an activity you never declared.
What to watch when choosing
It must describe the real activity
Do not pick a broad code because it “covers everything”. In an audit or a funding application, what is examined is whether the code matches the invoices you issue.
It must match your profession and qualifications
Some activities require a degree, a licence or registration in a professional register. The activity code does not replace the licence.
It must fit your premises
If your registered address is a home or a shop, the code has to be compatible with the permitted use of the space and with the building regulations.
Codes change over time
The activity code nomenclature is updated, and in Greece old and new codes have been mapped against each other. If you have not checked your registry lately, it is worth looking at which codes currently appear for your business and whether they still describe what you do.
A quick check
- look at the active codes of your business
- compare them with the invoices of the past year
- if something does not match, tell your accountant before an audit does
Contact us if you would like us to review your activity codes or add a new activity.
If you would like our office to handle it for you, see TAXGROUP services. For step-by-step instructions on the AADE and EFKA platforms, see our Useful guides.
Frequently asked questions
Can I hold more than one activity code?
Yes. There is one main code and as many secondary codes as your other activities require.
What if I invoice something not covered by my codes?
The relevant code must be added. Filing late carries a penalty and can create problems in an audit.
Does the activity code affect funding?
Yes. Most programmes define eligible codes and require them to have been active before a given date.
Does adding a code cost anything?
The change declaration to the tax authority carries no fee. It may, however, trigger other obligations, such as licensing or registration in a professional register.