VAT: Permanent reduction to 13% in tourism, transport, culture

Transportation, tour package and culture will operate permanently under the regime of a reduced VAT rate to 13% and with the beginning of the new year (2024). An exception will be the soft drinks served, on which VAT returns to 24%.

The relevant decision of the government will be reflected in the final text of the budget, which is to be submitted today, Tuesday, November 21, to the Parliament.

Using the fiscal margins left by the good course of tax revenues and the reduction of expenses, combined with the need to contain prices in a period of intense inflationary pressures, the government economic staff, seems to have reached the decision to return to 24% from 13% the VAT rate for soft drinks available from enterprises focus, to extend for another six months until June 2024 the reduced rates in taxis and cafe (in restaurants) and to fix the reduced VAT rates in transport, the tourist package and culture.

Reduced VAT rates in detail

In detail, the reduced rates fixed from 1/1/2024:

• Transport: Covers tickets for train, metro and tram, city and supercity buses, air and ferry tickets, as well as transportation with a combination of road, air and sea means. Individually the reduced rate of 13% for taxi fares is extended for six months until the end of June 2024.
• Tourist package: 13% VAT is imposed on accommodation with breakfast or half board.
  For full board accommodation only 5% of the single price is subject to the normal VAT rate of 24%. The rest 95% is burdened with 13%. For accommodation with the all-inclusive system at 90% of the single price, VAT is imposed at a reduced rate of 13%.
• Culture: Cinema tickets are charged at a reduced rate.
  As regards coffee and drinks served by catering businesses, the measure of reduced VAT is extended for another six months while those served by businesses catering soft drinks the VAT returns to 24%.