The environmental tax charged on the pricing of water services is subject to VAT at a rate of 13%. This was communicated with the competent authority by Circular No E.2151 / 2.8.2019 of the Independent Public Revenue Authority (EADA), which gave the following clarifications regarding the application of the VAT provisions to the environmental tax levied on invoicing. water services:
2 The provisions of Article 19 (1) of the VAT Code shall apply as taxable consideration to the consideration received or to be received by the supplier of the goods or the provider of services by the buyer, the recipient or a third party, plus any a supply directly related to it. Paragraph 4 of the same article, the taxable value includes, inter alia, any taxes, royalties, levies, public or third party charges and stamp duty, excluding VAT.
3 According to No. 135275 / 19.5.2017 (Government Gazette 1751, Vol. B, 22.05.2017) decision of the National Water Commission on “Adoption of general rules for the pricing and pricing of water services. Method and procedures for recovering water services costs in its various uses ”, water service providers in determining tariffs for end-users take into account, in addition to financial costs and environmental costs, as well as resource costs. Their invoices must indicate in a distinct, clear and comprehensible manner the ‘environmental charge’. “Environmental charge” is defined as the financial contribution of the end user per cubic meter of water consumed which is proportional to the environmental cost and the resource cost. Water service providers collect ‘environmental charge’ from end users. The amount of ‘environmental charges’ collected is reimbursed by the providers in favor of the Green Fund to a Special Account set up to implement specific measures.
4 It follows from the foregoing that the price of water consumed is also determined by the amount of the ‘environmental charge’, that is to say, the ‘environmental charge’ is directly linked to the supply of water and therefore increases the taxable value of the water supply tariffs, ie the consideration received by end-users for the supply of water and therefore subject to VAT at the same rate, ie 13%.
source – aftodioikisi.gr