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V.A.T. reduction from 24% to 13%: Which sectors and items it affects

Prime Minister Alexis Tsipras announced on Tuesday the reduction of Value Added Tax on food items and catering services. The reduction from 24% to 13% is expected to contract a  relief for millions of Greek households who have been paying a high price to staple food items since 2015.

Which items are affected:

Coffee, cocoa, tea, herbal teas, sugar, slat, vinegar, spices, sausages, jams, chocolates, wafers, croissants, nuts, biscuits, canned food, snacks, packed bread, snacks, cereals, oils from sunflower, soybeans and corn and all vegetable fats. food items based on flour and cereals, products for soups, sauces and broth, fish and certain kinds of pasta.

However, a day later, Greeks were bitterly disappointed to find out that the V.A.T. in their favorite drink, the coffee will remain at 24%.

After the outcry, the Finance Ministry modified the law amendment on Monday (May 13) and suggested reduction for coffee VAT when the product is sold in supermarkets. However, for served coffee, the VAT remains at 24%.

In addition the V.A.T. will also be reduced from 24% to 13% for catering services and this will affect prices for food in grill diners, pizzerias, bakeries, restaurants, taverns, cafeterias and cafes, patisseries, snack bars, fast food facilities, canteens etc.

The V.A.T. reduction is permanent and will be implemented as soon the bill in approved by the Greek Parliament. The government aims to bring to effect in May, and before the European and municipality elections.

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4 comments

  1. Stephen Whitty

    The 2019 Trade Surplus of 1.650 billion will apparently pay for these very much needed savings. There are many comments that can be made at this time with Elections approaching BUT I have one PLEA from a long time resident of Corfu….PLEASE allocate just 1,000,000 to rid Corfu of the continuing and very damaging GARBAGE PROBLEM and another 1,000,000 to fix our roads.
    I wrote an article which was published in Keep Talking Greece inviting the PM to Corfu to see for himself the state of affairs. Of course he never came or responded or responded.

    THIS ISLAND WILL DIE IF THESE TWO MAJOR ISSUES ARE NOT SORTED OUT NOW !!!!

  2. Christine homer

    Great news for everyone in greece

  3. Why were chocolates, croissants, biscuits, and snacks included? They’re neither essential foods, nor are they healthy.

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