Greece to Keep Reduced Tax on Tourism, Culture and Transport

Greek Parliament. Photo source: Froso-Kanellidou

The Greek government will be extending reduced VAT (value added tax) on tourism, culture and transport products into the new year.

More specifically, according to media reports, Greek authorities are expected to table a bill in parliament this week which foresees a 13 percent VAT rate on tourism, culture and transport products beyond January 1, 2024.

The decision also applies to coffee and other beverages with the exception of served beverages in which case VAT comes to 24 percent on the price through to June 2024.

The final decision will be announced after the finalization of the budget in parliament on Tuesday, said Greek public broadcaster ERT.

Photo source: Athens Traders Association (esathena.gr)

Reduced VAT applies to train, metro and tram tickets, city and intercity bus tickets, airplane and ferry tickets, as well as combined transport by road, air and sea. A reduced rate of 13 percent applies to taxi fares extended for six months until the end of June 2024.

Taxation on tourist packages: 13 percent on accommodation with breakfast or half board; only 5 percent of the total full board and accommodation is taxed at 24 percent with the remaining 95 percent taxed at a 13 percent rate. For all-inclusive tourism packages, 90 percent of the single price is subject to VAT at a reduced rate of 13 percent.

Lastly, cinema tickets are also taxed with the reduced rate.