Greece wins reduction to restaurant VAT from 23% to 13%
- Jul 10, 2013 | Richard Asquith
Following the latest round of negotiations for a new bail out tranche, Greece has agreed with the Euro Group and IMF that it may reduce the Greek VAT rate on restaurant and café services from 23% to 13% from 1 August 2013.
The rate was originally set at the higher, standard rate in 2011 as part of the conditions for Greece to receive emergency funding from the EU, ECB and IMF. The tax on the key tourism service has always been sensitive, and the Greek government has been keen to help boost tourism as the leading export.
The VAT reduction will initially be temporary - set to expire on 31 December 2013. However if it can be demonstrated that the cut generates more revenue (or jobs) than the cost of the cut, the. It will become permanent.
You can review all European VAT rates here.