Why your EAC electricity bill doesn't add up: VAT-exempt charges explained
The total on an EAC bill is not simply the net amount plus VAT. Here is why, and how to record the bill so you reclaim the right amount of VAT.
Take any electricity bill from the EAC, divide the total by 1.09 and you will not get the amount before VAT that is printed on the bill. That is not a mistake on the bill. It happens because part of the bill carries no VAT at all, and it matters every time you record the bill as a business expense.
What is on the bill
An EAC bill mixes two kinds of charges:
- Charges that carry VAT: the electricity itself, network and meter charges and similar items. VAT is added on these, at the rate that applies to electricity at the time.
- Charges that carry no VAT: most notably the contribution to the fund for renewable energy and energy saving, shown on the bill as Ταμείο ΑΠΕ & ΕΞΕ.
The total you pay is:
taxable amount + VAT on the taxable amount + charges without VAT
So the total is always a little higher than "taxable amount × 1.09", and working backwards from the total gives the wrong VAT.
Why it matters for your VAT
If you record the whole bill at one VAT rate, you claim VAT on the fund contribution too, even though no VAT was charged on it. The amounts are small on one bill, but they repeat every month on every premises, and an overstated VAT claim is exactly the kind of thing that gets corrected, with interest, if your returns are checked.
Tip: The bill itself tells you the right numbers. Look for the line with the amount subject to VAT and the VAT amount. Everything else in the total is the part without VAT.
How to record it correctly
Record the bill as two amounts:
- The taxable part: the amount subject to VAT, exactly as printed, with its VAT rate. Your software adds the VAT on top.
- The part without VAT: the fund contribution and any other charges without VAT, recorded with no VAT.
The two together equal the total you paid, and the VAT you claim matches the VAT on the bill to the cent.
Other bills work the same way. Sewerage and municipal fees, deposits and some government fees often carry no VAT, so any bill that mixes them with taxable charges should be split the same way.
Letting the software do it
In ToLogistiko, Scan & Fill reads the bill for you: it takes the taxable amount and the VAT printed on the bill, fills in the expense with the right rate, and saves the charges without VAT as a second expense, both at once. You check the values before anything is saved. The help centre has the details in bills with VAT-exempt charges.
In short
Never work out the VAT on a utility bill by dividing the total. Use the taxable amount and VAT printed on the bill, and record the rest as a separate expense without VAT.
