Food Services at Greek Hotels to Be Taxed Cumulatively
The General Secretariat of Public Revenues has issued instructions to accommodation professionals on how to calculate the newly introduced value-added tax (VAT) imposed on food services.
Effective since July 20, the 23 percent VAT applies to basic goods and services and includes ferry tickets and food-related services. [The VAT imposed on hotels will also rise (to 13 percent from the current 6.5 percent) as of October 1.]
With regard to package deals, according to the directive, a 23 percent VAT rate on food services will be calculated cumulatively from 5 percent to 30 percent on the total price of the package deal, depending on whether it includes breakfast or meals.
A VAT rate of 6 percent will apply to the remaining services included in the package deal through to the end of September, and will then increase to 13 percent as of October 1.
For island destinations already covered by a 30 percent discount in VAT rates, the tax will come to 4 percent from July 20 until September 30.
The 23 percent rate applies to all food-related services, 16 percent on the islands.
The said provision applies to food services offered at all accommodation facilities and includes food-related products for room service as well.
Due to the fact that package deals have been pre-agreed and prepaid, the lawmakers have foreseen the following:
– for accommodation including breakfast, 5 percent of the total package price is subject to the standard VAT
– for half-board: 15 percent of the total deal price is subject to the standard rate
– for full-board: 25 percent of the total price is subject to the standard rate
– for all-inclusive deals: 30 percent of the total price is subject to the standard VAT rate.
To read the instructions to accommodation professionals by the General Secretariat of Public Revenues (in Greek), press here.
[It is noted that the special tax status of the Aegean islands will gradually phase out and the 30 percent discount on VAT rates (for all products and services) is expected to be completely abolished by January 2017. For further information, press here.]