VAT rate reductions, across-the-board, expected in Greece in order to stimulate tourism, F&B sectors

Wednesday, 13 May 2020 12:07
UPD:12:08
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Two of Greece's economic mainstays, the tourism and the food-and-beverage sectors, are at the forefront of the government's soon-to-be-announced stimulus measures, mainly direct and indirect tax reductions. 

The primary "tool", according to reports, will be a reduction of the VAT rate, from 24 percent to 13 percent, on coffees, soft drinks and other beverages. Such a measure is aimed to off-set, partially, a reduction in the number of tables and chairs a business will offer, at least in the first period after the end of the coronavirus "lockdown".

An overall reduction in the VAT rate for eateries, from 13 to 11 percent, is also eyed for the coming period.

As far as the all-important tourism and travel sector, a major source of revenue for the country, a reduction or temporary suspension of an overnight fee, per person, paid by hotels and organized lodgings, currently between 0.5 to 4 euros, depending on the category of the lodgings.
Similarly, the Greek government is studying a reduction in the VAT rate that applies to hotels, from 13 to 6 percent.

It's almost assured that the VAT rate will drop from 24 to 13 percent for air and ferry boat transportation over the coming tourism season, the first post-Covid-19 summer.

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