According to the circular issued by the General Secretary of Public Revenue Katerina Savvaidou issued, the new three-tiered VAT reform comes into effect on Monday. The VAT reform sets out three rates – 6%, 13% and 23%. The low 6% rate will apply to medicine, books, newspapers, magazines and theater tickets.
The 13% rate will apply to most fresh meat (pork, lamb, goats, foal, chicken, turkey, rabbits), fish and mollusks (cuttlefish, octopi and squid), as well as milk and dairy products, fresh vegetables, grains, flour, olive oil, brad, pasta and water, among others. The 13% rate will also apply to energy, catheters, orthopedic goods and appliances.
Meanwhile the 23% will apply to all other food products, including beef, processed foods, coffees, catering, sweets, salt, hygiene products, computer, school tutoring and language learning services, taxi fares, mass transit tickets, funeral services and non-exempt medical and dental services.
The Ministry of Finances has clarified that the imminent hike in tourist services, from 6.5% to 13%, will come into effect on the 1st of October. Popular tourist islands – such as Myconos and Santorini – will also have their current 30% VAT discount abolished in October.
Some of the VAT hikes may in practice turn out to be problematic, such as bottled water, which will be sold with a 13% rate at super markets and kiosks, but with a 23% rate if served at a restaurant. Likewise, mixed minced meet will be charged according to the content.
