With 2016  State Budget publication the VAT rates to be applied for food/beverage services and meals ready to eat where changed, from the current 23% to 13%, starting from July 1st 2016.

Resulting from this change Tax Authorities issued the Circular Letter No. 30181, June 6, 2016 to clarify the uniform application of the various concepts, which includes:

  • Meals ready to eat (for food and beverages not including bread) – intermediate rate, 13%;
    • Nectar juices, bread and yogurts (even if served along with meals ready to eat) – reduced rate, 6%;
    • Mineral water and wine (even if served along with meals ready to eat) – intermediate rate, 13%;
    • Other alcoholic beverages, soft drinks, ice cream and pastries (even if served along with meals ready to eat) – standard rate 23%.
  • Restaurant and catering services (for consumption on the premises or on site, except alcoholic drinks subject to the standard rate) – intermediate rate, 13%;
    • Entrees, appetizers, sandwiches, desserts, ice cream, etc. (For consumption on the premises or on site) – intermediate rate, 13%;
    • Natural waters and in general cafeteria products (for consumption on the premises or on site) – intermediate rate, 13%;
    • Regular wines (are expressly provided for in the intermediate rate) – intermediate rate, 13%;
    • Alcoholic and soft drinks (even if served with the meal) – standard rate 23%.

When the price of ready to eat meal or restaurant and catering services are global and unique (as a single voucher), including goods with different VAT rates, not applying the rates on the proportion of each to the calculation of VAT due on the total amount, applies the higher rate on the whole amount.

See here the Circular Letter No. 30181, June 6, 2016