Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure GR-2020-12/677 – Updated – measures in Greece
Country | Greece , applies nationwide |
Time period | Temporary, 20 March 2020 – 31 December 2021 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation |
Author | Elena Kousta (INE GSEE) and Eurofound |
Measure added | 16 April 2020 (updated 28 September 2021) |
In the view of the spread of COVID-19 in Greece, the government intervened to sustain the business dealing with essential commodities to contrast the pandemic and, at a later stage, to sustain those enterprises most endangered by the economic crisis, providing VAT reductions.
The measures has been taken in two waves:
By virtue of the Legislative Act 20 March 2020 "Urgent measures to address the consequences of the spread of COVID-19, to support the society and entrepreneurship, and to safeguard the smooth operation of the market and public administration" and of the Circular No. 2038/2020, VAT is reduced from 24% to 6%, as of 20 March 2020, for products needed to protect against COVID-19 and to prevent its transmission. This is a general - horizontal measure, till the end of 2020, and it concerns masks, gloves, antiseptic solutions, wipes, soap, and ethyl alcohol, if used as a raw material by the industry for the production of antiseptics.
The exact tariff headings are set out in Αrticle 1 of LA of 20 March 2020. In addition, Article 11 of Law No. 4690 of 30 May 2020 and the Ε.2080/2020 provide, till the end of October, VAT reduction from 24% to 13% for passenger transport, coffee and non-alcoholic drinks and the provision of services in cafes, restaurants, pastry shops etc. and to 6% for movie tickets.
The following updates to this measure have been made after it came into effect.
26 March 2021 |
The measure is still in place. The government with new regulations (law 4787/26 March 2021, article 10) expanded the use of measure until 31 December 2021. |
No specific information yet available.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Sector specific set of companies
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
|
No special funding required
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | No involvement |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
The social partners were not involved in the designing of this measure.
No available answer.
This case is sector-specific
Economic area | Sector (NACE level 2) |
---|---|
C - Manufacturing | C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations |
I - Accommodation And Food Service Activities | I56 Food and beverage service activities |
R - Arts, Entertainment And Recreation | R90 Creative, arts and entertainment activities |
This case is not occupation-specific.
Citation
Eurofound (2020), VAT reduction from 24% to 6% for products needed to protect against COVID-19, measure GR-2020-12/677 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2020-12_677.html
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30 January 2023
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