Greek Tourism Stakeholders Call for Unified 11% VAT Across Services

The Greek Tourism Confederation (SETE) reiterated recently its call for a unified 11 percent VAT charge across all services related to tourism and transport aimed at ensuring the sector’s competitive edge, it said.

The issue was tabled during a meeting last week between new SETE President Yiannis Paraschis and Finance Minister Kostis Hadzidakis.

SETE had discussed the reduction of VAT earlier this year with Prime Minister Kyriakos Mitsotakis.

Paraschis accompanied by SETE board members presented the proposal to the minister, while also calling for an improved and updated legal framework that will regulate short-term rental activity which would be “to the benefit of all parties involved”. Other issues discussed included shoreline use and working conditions.

Greek Finance Minister Kostis Hadzidakis speaking with SETE President Yiannis Paraschis and members of the confederation’s board. Photo source: SETE

Commenting on the issue former SETE president Andreas Andreadis said via his twitter account that “in Spain and Portugal, VAT on accommodation and F&B is at 10 percent. In Turkey at 8 percent. In Greece at 13 percent (14.5 percent on all-inclusive products). The need to converge with the competition is logical and evident”.

The reduction of VAT has been an ongoing demand by hospitality and F&B services providers. The VAT charged on hospitality and toursm services in Greece is the fourth highest in the EU.