What do you need to know about the VAT rate changes in the Greek Budget for 2024?

The Ministry of Finance has announced the 2024 Budget, which includes some important changes in the VAT rate for various supplies. The budget includes a sixth extension to the reduced VAT rate of 13% for a range of basic supplies until June 30, 2024. This covers taxis and self-serve coffees, which were originally subject to a high VAT rate of 24%. The extension aims to support these sectors that have been affected by the COVID-19 pandemic.

However, the budget also proposes to make the reduced VAT rate permanent for some other supplies that are currently enjoying the temporary cut. These include:

• urban, suburban, land, and railway transport;
• tour packages;
• gyms;
• various health supplies, such as medicines, vaccines, and medical devices;
• cinemas and
• theatre tickets.

These supplies are considered essential for the social and economic well-being of the citizens, and the permanent cut will help boost their demand and consumption.

On the other hand, the budget will restore the high VAT rate of 24% on soft drinks served (not water), which were previously subject to the reduced VAT rate of 13%. This measure is intended to discourage the consumption of unhealthy beverages and promote public health.

The VAT rate changes will take effect on January 1, 2024, unless otherwise stated. The Ministry of Finance will monitor the impact of these changes on the economy and society and will make adjustments if necessary.