Fifth extension of COVID-19 rate cut on non-alcoholic drinks, transport and some tourism
The Ministry of Finance has announced a new prolongation of the cut to 13% on a range of supplies. The cut was due to run out on 30 June 2023. Instead, it will continue to 31 December 2023.
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.
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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.
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