VAT UPDATES
The Council of Ministers have issued a new decree (Κ.Δ.Π. 268/2020) dated 23.06.2020, regarding the application of the reduced VAT rate of 5% on hotel accommodation, restaurant and catering and transportation services within the Republic.
The reduced VAT rate of 5% will be applicable for the period 1 July 2020 to 10 January 2021.
The following services will be subject to the reduced VAT rate of 5%:
- Accommodation provided by hotels and similar establishments, including the provision of holiday accommodation.
- Restaurant and catering services.
- Transportation of passengers and their luggage within the Republic by urban, intercity and rural taxis, tourist and intercity buses.
Affected business are called upon to proceed immediately with the relevant actions so that the reduced rate of 5% is imposed on the above services for the period from 1 July 2020 to 10 January 2021. In addition, affected business must consider their obligations and rights regarding the time of supply.