The Ministry of Finance has announced the 2024 Budget, which includes some important changes in the VAT rate for various supplies. The budget includes a sixth extension to the reduced VAT rate of 13% for a range of basic supplies until June 30, 2024. This covers taxis and self-serve coffees, which were originally subject to a high VAT rate of 24%. The extension aims to support these sectors that have been affected by the COVID-19 pandemic.
What do you need to know about the VAT rate changes in the Greek Budget for 2024?
Public
Greece
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
842
Content accuracy validation date:
06.12.2023
Content accuracy validation time:
09:06h
However, the budget also proposes to make the reduced VAT rate permanent for some other supplies that are currently enjoying the temporary cut. These include:
- urban, suburban, land, and railway transport;
- tour packages;
- gyms;
- various health supplies, such as medicines, vaccines, and medical devices;
- cinemas and
- theatre tickets.
These supplies are considered essential for the social and economic well-being of the citizens, and the permanent cut will help boost their demand and consumption.
On the other hand, the budget will restore the high VAT rate of 24% on soft drinks served (not water), which were previously subject to the reduced VAT rate of 13%. This measure is intended to discourage the consumption of unhealthy beverages and promote public health.
The VAT rate changes will take effect on January 1, 2024, unless otherwise stated. The Ministry of Finance will monitor the impact of these changes on the economy and society and will make adjustments if necessary.
Other news from Greece
AADE Updates myDATA Platform in Greece
Public
Greece
Author: Nikolina Basić
Greece
Author: Nikolina Basić
The Greek tax authority AADE has updated the myDATA platform to version 1.0.10, adding features like delivery note transmission via ERP systems and direct submission of fuel invoices. The update also simplifies wholesale transaction rules and enhances access to E3 tax form records, streamlining compliance for businesses in Greece. The Greek Independent Authority for Public Revenue (AADE) has offic... Read more
Greece postpones the e-Delivery system by announcing new deadlines.
Greece
Author: Tara Nedeljković
Greece's tax authority, IAPR, has postponed the implementation of the e-Delivery system to provide businesses more time to adapt. Companies with a turnover exceeding €200,000 in 2022 now face a revised start date of April 1, 2025, for Phase One, while Phase Two will begin on October 1, 2025, for all other businesses. Read more
IRIS payment system in Greece - status and expansion of mandate
Greece
Author: Tara Nedeljković
Greece is advancing the IRIS instant payment system, mandating its adoption for all businesses by April 2025, with freelancers already required to use it for transactions up to €500 without commission. The initiative aligns with EU Regulation 2024/886, which mandates instant payments across Europe by October 2025, aiming to lower transaction costs and improve payment efficiency. Read more
New document was uploaded: Recorded webinar: E-invoicing for Global Retailers
Public
All countries
Author: Kristina Dosen
If you are struggling with complex e-invoicing implementations across multiple countries, and if you are concerned about mounting costs, potential delays, or compliance risks, our webinar will help you to learn how global retailers can streamline e-invoicing efficiently! With countries worldwide mandating e-invoicing, international retailers face unique challenges adapting to new regulations acros... Read more
A proposal for VAT in the digital age (ViDA) has been approved.
Public
Author: Nikolina Basić
The EU's Economic and Financial Affairs Council (ECOFIN) has approved the Value Added Tax in the Digital Age (ViDA) proposal, aiming to modernize VAT rules and combat tax fraud. ViDA introduces key measures like Digital Reporting Requirements (DRR), VAT collection for the platform economy, and expanded Single VAT Registration, with implementation planned from 2027 to 2035. Businesses must prepare... Read more
Electronic payments increase in Greece due to taxation projects in the past year
Greece
Author: Tara Nedeljković
In Greece, electronic payments surged in the past year due to initiatives like the interconnection of POS systems with cash registers to combat tax evasion, resulting in a 10.3% increase in VAT revenues in the first half of the year. Let's find out more on the observed increases! Read more
Further clarifications on tip taxation in Greece
Public
Greece
Author: Tara Nedeljković
Greece
Author: Tara Nedeljković
Starting November 1, Greece will make tips up to 300 euros per month tax-free for catering and personal care workers, with any amount above this threshold subject to tax. Tips paid electronically will be automatically reported by employers as additional income, exempt from insurance contributions, and taxed if they exceed the monthly limit. Recent clarifications on tip taxation in Greece have been... Read more