Greece reduces VAT rate on goods and services
The Greek government through the Finance Ministry had reduced the VAT rates for certain categories of goods and services since Monday, 20 May.(1) (2) These cuts come into effect after being announce in previous weeks (3) as part of a tax reduction due to a surplus on the 2018 budget.
The main category that benefits from these cuts is Basic food such as meat and fish, olive oil and generally standardized non-fresh food, which goes from a current 24% to 13% (as in 2014). Besides, VAT on energy (electricity and gas) also drops to 6% (4).
The VAT rate cut comes as a relief measure to the Greek people which have seen tax rises since the 2009 crisis.
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