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.
