VAT circular adds to confusion

Breakfast in Greek hotels will be charged with the increased 23 percent value-added tax, as 5 percent of the hotel charges that include breakfast will be hit with the new tax.

Half-board hotel packages will have 15 percent of their charges taxed with 23 percent VAT, while all-inclusive packages will get 30 percent into the new VAT bracket for food catering, according to a circular the Finance Ministry issued yesterday, valid as of September 1.

Confusion about the application of the measure extends to companies both serving food and selling packaged products (such as supermarkets), as they would have to apply different VAT charges to them.