Greek budget for 2024 changes FPA

New budget – new data on value added tax (FPA). Having a fiscal margin, the government will maintain the reduced VAT in the field of transport and tourism due to Covid-19.

According to available information, writes CNN Greece, the government has made a decision maintain the FPA rate of 13% for tourism business, transport and culture. The reduced rate of 13% also remains for coffee and drinks, and is abolished from January 1, 2024 for non-alcoholic drinks served by catering establishments.

The final draft budget, which will be presented to parliament today, November 21, provides for:

VAT 13%

Transport: tickets for trains, metro and trams, city and intercity buses, air travel, passenger ships, a combination of road, air and sea transport.

Tourism: fees for hotels and/or other types of accommodation – rooms and camps, including half board or full board. But there are nuances:

• When staying with breakfast or half board, 13% VAT is charged;
• when staying with full board, only 5% of the cost of the property is subject to the standard VAT rate of 24%, the remaining 95% – 13%;
• when staying on an all-inclusive basis, 90% of the single price (“package”) is subject to FPA at a reduced rate of 13%;
• An additional 30% tax reduction applies to the Aegean islands.

Sport: gyms, dance and/or sports schools, unless they are exempt from tax in accordance with Article 22 of the VAT Code. But if these enterprises provide additional services – sauna, steam bath, solarium, massage, hydromassage, aesthetic and dietary services – they are subject to a tax rate of 24%.

Coffee and taxi: for an additional six months, the FPA remains at 13%.

FPA 24%

Soft drinksserved by food service establishments, such as sparkling water, prepared drinks, juices and soft drinks in general.

FPA 6%

Culture: tickets to cinema and theater, concerts or other performances.

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