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Government Stalls VAT Reduction On Food Catering Services

The VAT rate on food catering services will be reduced once the Greek economy’s fiscal sector is stabilized, Deputy Finance Minister George Mavraganis said in Parliament on Friday, 31 August.

While answering a question of New Democracy MP, Yiannis Michelakis, the deputy finance minister said the government does intend to reduce the VAT rate on food catering services. However, he added it was premature to give an exact date for when the reduction would actually take place.

Mr. Michelakis stressed the need for immediate action by the government to make the Greek tourism package more competitive.

Meanwhile, the deputy finance minister told Parliament that the current VAT rate does not “directly affect” the Greek tourism package.

Mr. Michelakis countered this by saying the VAT rate in fact affected the Greek tourism package by 30 percent and was more expensive by three points.

He added that a VAT reduction would not only benefit the tourism industry but also agriculture while other occupations in relation to tourism would be supported.

The VAT rate on food catering services (restaurants, cafeterias, canteens and hotel restaurants) saw a 77 percent increase from 13 to 23 percent last September.

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