The scale of the rate reduction will be permanent by the decision of the Ministry of Finance VAT on cab and coffee according to a related notification.
Remember that from 1/1/2024 VAT rate reductions are made permanent in a series of items applied during the pandemic such as transportation, gyms, dance schools, cinemas and a series of items related to public health with an annual cost of 305 million euros. In addition, the reduced rate of coffee, cocoa, tea and chamomile offered by restaurants and taxis has been extended until 30/06/2024 with an estimated cost of six months of 77 million euros.
Mitsotakis: “Window” for the extension of VAT on coffee
The decrease
In addition, the reduction in the rate of non-alcoholic beverages was set at 13% for cases involving deliveries of goods (take away and delivery), while in served non-alcoholic beverages it returned to 24%.
As of 1/7/2024, the rate reduction for taxis is permanent (from 24% to 13%) with an estimated annual fiscal cost of 45 million euros.
In addition, the reduction of the VAT rate remains (13%) on coffee, cocoa, tea and chamomile which covers the delivery of goods (pickup and delivery), with an estimated fiscal cost of 65 million per year, and returns only 24% for serving items, proportional to the rest of non-alcoholic beverages, with an estimated savings of 43 million per year.
As reported by the Minister of National Economy and Finance Kostis Hatzidakis “the reduction of VAT on taxis and the delivery of coffee in the form of pickup and delivery is permanent” to add that “the Government is doing its best to strengthen, in difficult conditions, vulnerable social groups, while achieving fiscal targets, at a time when the economies of many other EU countries are being tested.