Global Daily Tax News, Greek Duty Exemptions For Non-EU Travellers Challenged, (Feb 13, 2025)

The European Commission has escalated infringement proceedings against Greece, calling on the nation to remove the excise duty exemption for tax-free shops at land borders with non-EU countries.

The Commission has sent a reasoned opinion to Greek authorities – the second stage in the infringement proceedings – for failure to comply with the Council Directive (EU) 2020/262, laying down the EU rules on general arrangements for excise duty. Greece now has two months to respond or the case may referred to the European Court of Justice.

Under the contested arrangement, Greece exempts from excise duty goods which are sold to travellers by tax-free shops located at its land borders with Albania, North Macedonia, and Turkey. Until January 2017, EU legislation allowed member states which held tax-free shops located outside an airport or port on July 1, 2008, to use such exemptions. Although this is no longer permitted under EU legislation, Greece continues to maintain duty-free shops at its land borders with non-EU countries.