No VAT, No duties
Free Zones are special areas, usually near ports or airports, for the storage of imported goods under beneficial customs conditions. When goods are held in a Free Zone, import duty, VAT and excise duties are suspended on goods imported from outside the European Community until the goods are released into free circulation, used or consumed within the Free Zone.
Efficient Processes
Free Zone can help you to manage the process of importing goods more effectively and/or improve cash flow. Once you are authorized to operate in a Free Zone (or you have chosen an operator who is already authorized to operate on your behalf) you can enter your goods and then remove them when it suits your business. You may also, carry out certain handling or processing operations on the goods while they remain in the Free Zone.
Tax Flexibilities
Special tax provisions, provide the “simple” processing/repacking/labelling of products, based to non-community components, without company’s obligation of having a Permanent establishment in Greece (income taxation) and under specific conditions, their supply within EU with no customs duties and VAT, as free circulated goods within European Union.
Free Zone Type I Benefits
1. Improved cash flow management by removing the obligation to pay VAT or import duty at the same time as goods are physically transported into Greece you can meet your import tax obligations closer to the time you sell the goods.
2. VAT-free importation of goods designated for another EU Member State.
3. Goods brought from outside the EU and held in a Free Zone are treated as being outside the customs territory of the EU even though they are physically within it.
4. In the Free Zone you can store goods without paying import VAT, excise duty or import duty until you remove the goods or released for free circulation.
5. Free Zones can help you to carry out certain handling or processing operations on the goods while they remain in the Free Zone.
6. Community goods may be put in free zones in order to benefit from Community legislation governing export refunds or the repayment of import duties and VAT refund even if actual export procedure will take place on later stage. (i.e. no VAT is charged by the supplier in respect of those goods at triagonal transactions).
7. Deferred payment: A general provision exists under the deferred payment scheme for deferment of payment of VAT and import duty to the 15th day of the month following the month in which VAT becomes due. It is a direct debit system and requires the lodgment of a guarantee and compliance with the conditions of the scheme.
8. Better flexibility in choosing destinations for your goods.
