Which coffees are more expensive today? Cheaper delivery and take away.
From today, the price of coffee and non-alcoholic drinks in Greek stores will increase as the VAT rate for in-store consumption returns to 24%. The tax is fixed at 13% only for takeaway and delivery.
Speaking about the price increases, a cafe owner told OPEN:
"We asked Mr. [Finance Minister Kostis] Hatzidakis to keep the VAT at 13 %, but we were not listened to. From today, the first day, 24% is imposed on served coffee and non-alcoholic drinks, meaning that our patrons will not sit in the lounge because of the price will increase."
Panagiotis Karasavvidis emphasised that served coffee will go from 3.5 euros to 4 euros.
At the same time, he pointed out that due to the tax and the decrease in customers in the store, shopkeepers will be forced to lay off staff, especially waiters, "and this is not good for the economy of our country."
How much will the prices in the cafeterias increase?
The return of coffee to the high VAT rate (24%), combined with the large price hikes in the raw material, is expected to increase the price of served coffee in cafes by up to 15%.
According to ERT estimates, with the new 15% increase in the price of coffee:
- the Freddo espresso in a cafeteria will be sold at 4 to 4.10 euros from 3.5 euros,
- the price of Freddo cappuccino will rise to 4.50 - 4.60 euros from 4 euros today, and
- Greek coffee, which until yesterday cost 2.5 euros, will be sold for at least 2.80 euros from today.
The AADE circular
At the same time, AADE issued a circular clarifying its position.
It states:
"From July 1, 2024, the standard VAT rate of 24% is applied to the on-site consumption (served) of all types of coffee, cocoa, tea, chamomile and other beverages, and therefore, the standard VAT rate of 24% is applied to all alcoholic and non-alcoholic juice drinks and beverages available for on-site consumption.
"After July 1, 2024, the reduced VAT rate of 13% will continue to be applied to the delivery of non-alcoholic beverages, juices and beverages (take away and delivery), including coffee, cocoa, tea and chamomile and other beverages as they constitute delivered goods and the delivery of these by catering businesses to their customers is not part of an overall on-site provision of catering service.
"Taxi fares remain at the low rate of 13%."
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