On July 13, 2023, the House of Representatives voted for amendments to the Value Added Tax Law, which apply new VAT rates for specific categories of goods and services, in line with European Directive 2022/542.
Based on the European Directive 2022/542 which was published on 04/05/2022, the EU member states may apply the following reduced VAT rates, provided that the relevant legislative framework will be notified to the European VAT Commission by 07/10/2023:
- Two reduced VAT rates, which cannot be lower than 5%, in 24 of the 29 points of Annex III of the European VAT Directive.
- A rate below 5%.
- A zero coefficient.
New VAT rates based on the relevant amendments to the Value Added Tax Law
In accordance with European Directive 2022/542, the Value Added Tax Law has been amended as follows:
- Adoption of a VAT rate lower than 5%, amounting to 3%, for the following categories of goods and services:
o Right of entry from the first performance of plays, music and dance works or classical works.
o Street cleaning, waste collection and waste treatment services, except those provided by state authorities, local government authorities and public law organisations, which are exempt from VAT.
o Wastewater disposal and treatment and emptying of septic tanks and industrial tanks.
- It is also proposed to adopt a VAT rate lower than 5%, amounting to 3%, on the following categories of goods, intended for the promotion of cultural goods and goods for the service of citizens with special needs:
o The delivery of books, newspapers and magazines, either in physical stock or electronically (subject to conditions).
o Special lifting devices (stairs, elevators, wheelchair lifters and the like) used to serve the disabled.
o Wheelchair-type carriages and other vehicles for the disabled, whether or not with a motor or other propulsion mechanism.
o Orthopedic items and devices, including medical surgical belts, bandages and crutches.
o Splints, supports, and devices for fractures.
o Accessories and accessories.
o Hearing aids for the deaf and other devices that are hand-held, carried by persons or inserted into the human body, with the purpose of filling a deficiency or treating a disability.
- Finally, it is proposed to include the following items, for the personal use of blind and disabled persons, in the zero VAT rate:
o Typewriters with Braille characters and special electronic typewriters for disabled persons.
o Wheelchair-type carriages and other vehicles for the disabled, even with a motor or other propulsion mechanism, as long as they are intended exclusively for the personal use of the disabled.
All the above mentioned measures are aimed at supporting vulnerable people, mitigating the increased cost of goods, supporting culture and encouraging citizen participation through reduced prices.
