ECONOMY

VAT rate cut application clarified anew

General Secretary for Public Revenues Haris Theoharis issued some further clarifications on Wednesday regarding the reduction of value-added tax in food services as of today, following some confusion in regard to how the measure applies to non-alcoholic beverages.

He explained that a soft drink provided to the consumer by a delivery firm will carry the regular 23 percent VAT rate, while the price at a restaurant, taverna etc will entail a 13 percent VAT rate for the trial period until end-December.

Theoharis was reacting to the confusion generated by a Finance Ministry statement on Tuesday regarding the application of the new rate. He said that the measure brings Greece into line with a European Court of Justice ruling that identifies food services as allowing for on-site consumption along with the supply of accompanying services such as waiting, cleaning etc.

The discrepancy between the tax on soft drinks consumed on-site and those purchased via delivery does not apply to food, Theoharis said.

“It is not accurate that the rate for ready-made food varies depending on whether it is consumed in the store or outside it, e.g. through home delivery. In every case the reduced rate of 13 percent applies,” stated Theoharis.