Greek Tourism Bodies Calling for Lower VAT Tax Rate

Greek Tourism Minister Vassilis Kikilias, SETE President Yiannis Retsos, Greek Prime Minister Kyriakos Mitsotakis and Athens International Airport (AIA) CEO Yiannis Paraschis. Photo source: SETE

Key issues concerning the tourism sector topped the agenda of a working meeting between Greek Prime Minister Kyriakos Mitsotakis, Tourism Minister Vassilis Kikilias and Greek Tourism Confederation (SETE) President Yiannis Retsos this week.

SETE reiterated its proposal for a unified 11 percent VAT charge across all services related to tourism and transport which will ensure the sector’s competitive edge, it said.

The reduction of VAT has been an ongoing demand by hospitality and F&B services providers. Hellenic Hoteliers Federation President Grigoris Tasios has repeatedly called for the reduction of VAT on accommodation (to 6 percent from the current 13 percent) as has Panhellenic Federation of Restaurant Enterprises (POESE) Yiannis Daveronis.

Other topics discussed included ensuring good working conditions for those employed in tourism and actions required to capitalize on Greece’s brand name, preserving  the country’s good reputation, and  the implementation of SETE “Greek Tourism 2030 | Action Plans’.

Additionally, SETE reiterated the need to regulate short-term rental activity by modernizing the legal framework so that fair play is ensured.

Photo source: Prime Minister’s press office

The meeting was also attended by Labor Minister Kostis Hadzidakis, State Minister Akis Skertsos, Deputy Minister for Taxation Policy Apostolos Vesyropoulos, Athens International Airport (AIA) CEO Yiannis Paraschis, Marketing Greece CEO Ioanna Dretta and representatives from other tourism bodies.

A main priority for the PM and SETE is to increase traveler spending and address the urgent issue of staff shortages. Earlier this week Mitsotakis acknowledged that the sector was a leading driver of the economy, adding that the main goals had been achieved, including extending the tourist season as well as seeing revenues exceeding initial goals set by the finance ministry.