Greece has drastically reduced VAT, prices are falling altogether


Greece shall reduce VAT on air, sea, bus and public transport, on coffee and all soft drinks in cafes and restaurants and on summer cinema tickets from 1 June to 31 October 2020. The tax will be reduced from 24% to 13%, which is expected to lead to lower prices of specific products and services.

If the owners of cafes and other catering establishments decide to apply the reduced VAT directly on the prices, this will mean that in the next five months coffee and soft drinks, such as juices, teas, etc., will be between 20 and 50 cents more. cheap.

In particular, coffee, juice or tea, which cost 3.5 euros, can now cost 3.20 euros, or instead of 4 – 3.65 euros.

However, as was the case when VAT increased and the owners decided that the difference in prices should be at their expense and not that of customers, so now it is possible to do the same so that prices remain unchanged.

Greek government spokesman Stelios Pezas said at a regular briefing that with the new tax breaks, businessmen have every reason to apply part of the VAT reduction at lower prices to consumers.

Greek Prime Minister Kyriakos Mitsotakis said in a video message to citizens that he knows how important cheaper transportation by bus, boat and plane is.

“I want those who travel and go on holiday to do so this summer at the lowest possible price,” he said.

In practice, this would mean that the ticket for public transport in Athens, which is now 1.40 euros, will be 1.28 from June 1st, but Greek Deputy Minister of Transport and Infrastructure Yiannis Kefaloyannis said that the possibility of further reduction of prices.

As for the other tickets, for example, if a boat trip to one of the Greek islands now costs 80 euros, with the reduced VAT it should cost 73 euros.

Traveling by train from Skopje to Thessaloniki and back now costs 19.50 euros in both directions, and with the reduced VAT it should be about two euros cheaper.

As for bus transport, for example, the return ticket Athens-Thessaloniki is now 59 euros, with the reduced VAT should be 54 euros.

The VAT reduction for the same period of five months is also provided for tourist packages. From the previous ratio 80/20, ie. VAT of 13% for 80 percent of the package and 24% for 20 percent of the package is now reduced to 90/10 – 13 percent VAT will be for 90 percent of the package, and the remaining one tenth will be with a tax of 24%.

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