VAT Cut On Restaurants Considered

Greece’s Economy Ministry is considering slashing taxes to enable national economic development, press reports said last month.

According to reports, the ministry was looking into reducing the VAT rate on food catering services from 23 percent it stands today to either 13 percent or even 6.5 percent. Reduction of the VAT to 6.5 percent would see to a significant decline in prices.

The VAT on food catering services (restaurants, cafeterias, canteens and hotel restaurants) increased last September from 13 to 23 percent (a 77 percent hike). The hike was one of the terms of an agreement with Greece’s creditors.