GREECE Law and Practice Contributed by: Nikos Nikolinakos, Dina Kouvelou and Alexis Spyropoulos, Nikolinakos & Partners Law Firm
ing services via websites and applications, with the use of special software allowing the selective display of advertisements to visitors belonging to certain groups of consumers, based on cri - teria such as age, gender or consumption hab - its, constitutes the accrual of royalties, which is subject to withholding tax. Similarly, in 2016, the Ministry of Finance answered a relevant ques - tion that the use of software of a platform for the registration of advertisements is included in the concept of royalties. In this regard, it has been held that the Greek authorities understand anything digital or connected to the internet as software, and thus deem the use of software to involve the accrual of royalties. The practical implication of whether or not advertising through digital platforms constitutes the accrual of royalties is that income from roy - alties is subject to withholding tax at a national rate of 20% or at the rate provided for by the double taxation agreement (DTA) in force, while on commercial transactions there is no issue of withholding tax. Legal entities that are not tax residents and do not maintain a permanent establishment in Greece are, in principle, not subject to tax in Greece on income they acquire from sources in Greece. However, income from royalties acquired by these entities is subject to tax in Greece. In practice, the withholding tax that is applied to the above income exhausts their tax liability. If these entities are residents of a state with which there is a DTA in force, the provisions of the agreement shall apply. 1.4 Consumer Protection Consumer Protection Laws Applicable to the TMT Sector The following consumer protection laws apply to digital goods and services relevant to the TMT sector, covering various aspects regarding con - sumer rights and sellers’ obligations:
• Law 4967/2022, which transposed Directive (EU) 2019/770 on contracts for the supply of digital content and digital services and Direc - tive (EU) 2019/771 on sales of goods and the Consumer Protection Law and the Civil Code, as amended; and • Presidential Decree 131/2003, which trans - posed the e-Commerce Directive. Consumer protection issues are specifically reg - ulated in the electronic communications sector. In particular, EETT ensures compliance with con - sumer rights in electronic communications under its Decision 991/4/17.05.2021 (“Regulation On General Authorisations”), by directly referring to the application of the Consumer Protection Law for various issues and by adding specific provi - sions on the necessary information of the con - tracts concluded between consumers and the providers of electronic communication networks and/or services. In light of the above, EETT has also issued a Code of Conduct for the provision of electronic communications services to con - sumers. EETT establishes specific obligations for providers prior and during their contractual relationship with consumers. Companies can ensure they uphold consumer rights in the digital economy by: • not using false/misleading descriptions on the goods and services offered; • using transparent pricing calculations and other costs; • adopting clear and easily understood terms and conditions in contracts, and not including unfair terms of use; • stating the consumers’ legal rights and offer - ing efficient customer service options for consumer complaints; and • not adopting unfair commercial practices.
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