Essentials get affordable from November 2023

In a significant development, the Greek Tax Department has announced that the Ministerial Council, during its session on September 13, 2023, has given the green light to an official decree that modifies the VAT legislation. This modification is aimed at imposing a zero VAT rate on specific essential items from Noverymber 1, 2023, to April 30, 2024.

The following products are covered by this new provision:

Bread: All types of bread, whether fresh or frozen, with or without yeast (e.g., white, brown, whole-grain, multigrain, rustic, sesame, cornbread, baguette, ciabatta, sliced bread, rolls, focaccia). Excluded are pastries, dried bread, and any bread with additional ingredients like raisins or nuts.

Milk: Fresh milk (e.g., cow's milk, goat's milk, sheep's milk), sweetened milk, condensed milk, long-life milk, flavored milk (e.g., chocolate, banana), plant-based milk (e.g., almond, soy, rice).

Eggs

Baby Food: In powdered, dry, or liquid form, intended for consumption by children. Excluded are snacks (e.g., chips, dried fruits, candies, chocolates, ice cream).

Baby Diapers

Women's Hygiene Products: Including tampons, sanitary napkins, and incontinence pads.

Adult Diapers

Coffee: Unroasted coffee beans, roasted coffee beans, ground coffee, instant coffee, flavored coffee, with or without caffeine, in any packaging.

It's important to note that this zero VAT rate does not apply to ready-to-drink coffee or beverages primarily composed of coffee, whether consumed hot or cold.

Sugar: Crystal sugar (white, brown, black), powdered sugar (icing sugar), granulated sugar, sugar cubes, sugar sachets.

As a reminder, items 1 to 7 listed above have already been subject to a zero VAT rate since May 5, 2023.

This move by the Greek Tax Department aims to make essential items more accessible to the public and alleviate financial burdens on households during the specified period. It is expected to have a positive impact on consumers and promote the affordability of these everyday necessities.