| Update: | Compliance Alert – Permanent VAT rate changes from July 2024 |
| Date: | 2024-08-09 |
The Greek Ministry of Finance has announced permanent VAT rate changes, effective 1 July 2024. The 13% VAT rate, initially introduced as a temporary measure during the COVID-19 pandemic, is now permanent for certain goods and services.
Below are the most important changes:
- 13% VAT rate made permanent: The reduced 13% VAT rate will continue for takeaway or delivery of non-alcoholic beverages, such as coffee, tea, and chamomile, and taxi passenger transport services;
- Standard 24% VAT rate for on-site beverages: Beverages consumed on-site in cafes, restaurants, and catering establishments will revert to the standard 24% VAT rate;
- Other permanent reductions: The 13% reduced VAT rate will also apply permanently to urban, suburban, and railway transport, tour packages, gyms, and various health supplies. Additionally, the 6% VAT rate remains for admissions to cinemas, theatres, and concerts.
These changes aim to support the transport sector, make certain services more affordable and maintain lower prices for essential items, while the higher rate will continue to apply to beverages served on-premises.