VAT reduced from 9% to 5% for Hotels & Restaurants

We would like to inform you about the amendments to VAT’s Fifth and Twelfth Annex of 2020.

The decree adds the following categories to goods deliveries and services that are subject to a reduced VAT rate of 5% of the Fifth Annex.

1. Accommodation in hotels, tourist accommodation, and similar areas, including holiday accommodation. 2. Restaurant and catering services. Restaurant and catering services are the services that consist of the delivery of prepared or non-prepared food or beverages or both, for human consumption, accompanied by adequate support services that make it possible to consume them immediately. The supply of food or drink, or both, is the main but not the only service of the whole business. Restaurant services cover the provision of such services at the provider’s premises and catering services cover the provision of such services outside the provider’s premises. Delivery of prepared or non-prepared food or beverages or both, with or without transport, not accompanied by other support services, are not considered restaurant and catering services. 3. Transfer of passengers and their accompanying luggage inside the Republic by urban, intercity and rural taxis as regulated by the current legislation on Traffic Regulation and by tourist, excursion and intercity buses. The Twelfth Annex of the law is differentiated by the deletion of the first three paragraphs. It is noted that the said decree enters into force from 1 July 2020 until 9 January 2021. The decree is attached as it is in Greek.