Amendment: Permanent 13% VAT for taxi passenger transport

Article 1: Combating profiteering

• Extends the temporary measure against profiteering in essential products until December 31, 2024.
• Increases the maximum fines for non-compliance.

Article 2: Extending measures against price increases

• Extends the following measures until December 31, 2024:
  • The “household basket” initiative, which monitors prices of essential goods.
  • The obligation for businesses to notify price increases for certain products.
  • The obligation for energy providers to notify price changes.
• Extends the deadline for renewable energy producers to submit documents for grid connection until November 30, 2024.
• Extends the deadline for agricultural electricity customers to switch to the GAIA tariff until October 31, 2024.

Article 3: Permanent VAT reduction for taxi services

• Permanently reduces the VAT rate for taxi services to 13% from 30th June 2024.

Article 4: Suspension of enforcement measures against ELAS A.V.E.E.

• Extends the suspension of enforcement measures against ELAS A.V.E.E.’s movable and immovable property for an additional 102 months, until December 31, 2028.

Rationale

• The measures against profiteering are still necessary to combat inflation.
• The measures to protect consumers from price increases need to be extended as inflation remains high.
• The VAT reduction for taxi services is intended to make them more affordable for consumers and to support the taxi industry.
• The suspension of enforcement measures against ELAS A.V.E.E. is necessary to protect the company’s viability and jobs.

Additional notes

• The law amendment was submitted to the Greek Parliament on June 29, 2024.
• It is expected to be voted on in the coming weeks.

Source: taxheaven.gr

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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