VAT Cut For Greek Restaurants Not Certain

Greek Finance Minister Yannis Stournaras

Greece’s Finance Ministry will decide on a possible VAT decrease on food catering services this June but only if Greece reaches its revenue targets, according to Greek Finance Minister Yannis Stournaras.

The VAT on Greek food catering services (restaurants, hotel restaurants, cafeterias, etc.) currently stands at 23 percent.

According to press reports, Mr. Stournaras said that “tax cuts are desirable, but not currently possible” due to the level of the country’s revenues.

The finance minister said that a decision would be made on the matter after the Greek Government holds discussions with the troika of the country’s international lenders (European Commission, European Central Bank and International Monetary Fund).

It is reminded that the Greek government had increased the VAT charged on Greek food catering services by 77 percent (from 13 to 23 percent) in September 2011.