VAT on food and catering: From next Monday it falls to 13%

 
This is reflected in the amendment tabled in Parliament – From Monday comes into force and the reduced rate of tax on electricity and gas

From the following Monday (20 May), the transfer of food and catering services from the normal VAT rate of 24% comes into effect at a reduced rate of 13% as provided in the  amendment tabled to the House  by the Finance Ministry.

According to the amendment, a lower rate of Value Added Tax  (VAT) is transferred to  different goods and services.

“More specifically, they are transferred to a reduced rate of VAT. (13%) from twenty-four percent (24%) currently in force:

1) types of oils, meat and fish preparations, cocoa, yeast, salt, vinegar, etc.,

2) the provision of services from boarding houses, structures for the disabled and structures providing accommodation to people with mental retardation, mental disorders and substance use,

(3) the operation of cafés, cafeterias, patisseries, restaurants, grills, groceries and other associated businesses, excluding entertainment centers, with the exception of the sale of alcoholic and non-alcoholic beverages, juices and beverages.

It is also reduced by thirteen percent (13%), which is now six per cent (6%): the tax rate for electricity and gas.

The above apply from 20.5.2019 “.

According to the State Treasury’s report, “the proposed provisions bring about an annual loss of state budget revenues, from the transfer to a lower VAT rate. of various goods and services, the amount of which can not be determined because it depends on the size of their consumption. It is estimated, however, that for the year 2019 (on a seven-month basis) for the year 2020 it is expected to reach approximately € 441 million and approximately € 667 million, respectively. “

source – patranews.gr

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