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Greece VAT hikes on essentials: beer and coffee


 Paradise costs.

On June 1, 2016, the value added tax (VAT) rate on coffee and beer in Greece increases from 23% to 24%. Greeks may opt to stay home rather than heading to the café to partake.

Greece’s quintessential café culture has been particularly hard hit by the VAT increases resulting from the country’s lingering economic crisis. The tax on restaurant services and many foods (notably coffee, milk, sugar, bread and meat) increased by a whopping 10% last year. The June 1 VAT hike is part of a package of tax reforms required by the European Union and the International Monetary Fund in exchange for the next installment of Greece’s bailout funds.

VAT increases aren’t limited to foods and restaurant services. 2015 saw higher rates on admissions to cinemas, catering services, florist services and transportation services. And VAT on charges for a number of other goods and services also increase by 1% on June 1, including:

  • Fixed telephone
  • Internet
  • Pay TV subscriptions

Greeks can’t escape higher taxes by car, either. Tax on fuel also increases as of June 1.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.