Filenews 16 June 2023 - by Eleftheria Paizanou
Although the zero VAT on seven categories of products did not deliver as expected, as the benefit of the tax elimination was not always passed on to consumers, yesterday the Council of Ministers approved a bill introducing a new VAT rate of 3% on a number of services and goods.
The VAT reduction was made on the basis of the European Directive, which provides flexibility to Member States in relation to VAT rates applicable in other Member States, ensuring equal treatment between Member States.
It also aligns with EU and Member State priorities for the green and digital transitions and protects public health. In detail, after the approval of the bill by the Parliament, consumers will pay 3% VAT for the following services:
– Right of admission to the first performance of theatrical performances of musical and dance plays or classical works
– Street cleaning
– waste collection and waste treatment, other than those provided by State authorities, local authorities and bodies governed by public law;
– Disposal and treatment of wastewater and emptying of septic tanks and industrial tanks.
In addition, 3% VAT will be taxed on the purchase of books, magazines, newspapers and similar products whether they are provided on a physical medium or in electronic form.
The same rate will apply to the purchase of special lifting appliances, such as ladders, lifts, handicap machines and the like, used to accommodate disabled people.
The purchase of wheelchairs for the disabled will also be charged with 3% VAT (even if they are available for use by hospitals and clinics). In addition, the same reduced taxation will be levied on the purchase of orthopaedic appliances, such as bandages and crutches, splints, brackets and other articles and devices for fractures, prosthesis articles and devices, and devices to facilitate hearing in the deaf and other hand-held devices.
In addition, it was decided to reduce VAT to zero on items for the personal use of blind and disabled persons. These are typewriters with braille characters and special electronic devices and wheelchairs for disabled people, exclusively for their personal use.
It is worth noting that the zero VAT for these goods will be done by decree. The annual budgetary cost from yesterday's decision of the Minister will be €3.5 million. To this will be added the €11 million. that the state will lose from zero VAT by the end of October in 7 categories of products.
