Greece extends temporary 13% reduced VAT to 30 Jun 2024

Extension of COVID-19 rate cut taxis; permanent cut for other supplies

The Ministry of Finance’s 2024 Budget includes a sixth extension to the reduced VAT rate for a range of basic supplies until 30 June 2024.

This covers taxis and self-serve coffees.

However, the budget now proposes to make the cut permanent for:

  • urban, suburban, land, and railway transport;
  • tour packages;
  • gyms;
  • various health supplies;
  • cinemas; and
  • theatre tickets

It will restore the high VAT rate of 24% on soft drinks served (not water).

The cut was due to run out on 31 December 2023. Instead, it will continue for at least a further six months

Sept 2022 – Inflation at 11.2% forces forth prolongation of reduced VAT rates on key supplies

Greece had announced a fourth extension of the temporary cut in the reduced Value Added Tax rate on certain goods from 24% to 13%. This fourth extension is included in the 2023 Budget. This comes as inflation hits 11.2% in August.

The VAT cut was first implemented on 30 June 2020, and was designed to reverse in April 2021. It was since extended to 1 October 2021 and then 30 June 2022.

The affected supplies are:

  • coffee;
  • transport;
  • non-alcoholic drinks;
  • catering services;
  • cinemas;
  • gyms and dance schools; and
  • tourism packages.

The continuation of the tax subsidy, originally introduced due to the COVID-19 emergency, is now blamed on an expected rise in food and power costs amid higher international prices for transportation, raw materials and energy.