The reduced VAT rates on public transportation tickets and tourism are made permanent, extended for six months until June for coffee and taxis.
On the contrary, the VAT rate on beverages served in dining establishments is restored to 24%. These provisions are reportedly included in the 2024 budget, which is being submitted to the Parliament tomorrow.
This measure covers tickets for land, sea, or air transportation, as well as charges for hotels or other types of accommodations. In a tourist package where the invoice includes accommodation with breakfast or half-board, a VAT of 13% is imposed, while for accommodation with full board, only 5% of the total price is subject to the standard VAT rate of 24%, and the remaining 95% is taxed at 13%.
For accommodation with the all-inclusive system, VAT at a reduced rate of 13% is applied to 90% of the total price.