VAT mess in the catering sector

A mess is expected by September 1st following the decision of the economy team to apply 13% VAT tax on «all inclusive» hotel guests from abroad, while Greeks will be subjected to a 23% VAT tax.

As Deputy Prime Minister and Finance Minister Evangelos Venizelos pointed out at a press conference on Monday, after his meeting with the production sector, a decision was made to apply a 23% VAT tax on all prepared food sold by restaurants, barbecues and so on, from September 1st.

Venizelos hinted that the 23% VAT tax on food will not be removed until the end of the year because this is not included in the discussions with the Troika. He also categorically ruled out the possibility of new measures.

Answering a question regarding the recent attacks by New Democracy president Antonis Samaras, he said: "I have not sought, nor wanted to take up the post of finance minister. I am sacrificing my political future in this position. If Samaras thinks he can do more, then he should try to help at the EU party level."

As for the recession, he repeated that he does not adopt the scenarios about 5,3% at the end of the year; however, he estimates that it would indeed rise to more than 4,5%.

Referring to privatization, he was adamant that the program will be implemented without exceptions, aimed at collecting 5 billion euros by the end of the year.

More specifically, as he stressed, the aim is to collect 1,3 billion by the end of September and 3,3 by the end of the year.

He added that the implementation of the program requires effort and absolute transparency, and that preferably, attention will be given on privatizations that will not be affected by the Stock Exchange.

The Finance Minister also said that the process of exchanging Greek government bonds held by individuals is at an advanced stage and expected to be completed in the first two weeks of October.

He also stated that the decisions of the July 21 summit will change the situation in favor of the Greek economy and by extension, the financial situation of companies and households. Alluding to the commitments of our country with regards to structural changes, he said they will come about normally, without considering the political cost.