The Price of Coffee in Greece Is Going Up Today! 24% Tax for Drinking in a Cafe

Greek stores will see an increase in the price of coffee and non-alcoholic drinks as the VAT rate for in-store consumption returns to 24%. The tax is fixed at 13% only for takeaway and delivery. Cafe owners have requested a 13% VAT rate, but were not listened to. From today, the first day, 24% is imposed on served coffee and non-alcoholic drinks, causing patrons to avoid the lounge.

Espresso freddo, a simple Greek coffee that combines espresso and ice, will go from 3.5 euros to 4 euros. Shopkeepers will be forced to lay off staff, especially waiters, which is not good for the economy of the country.

The return of coffee to the high VAT rate (24%) combined with large price hikes in raw material is expected to increase the price of served coffee in cafes by up to 15%. Freddo espresso in a cafeteria will be sold at 4 to 4.10 euros from 3.5 euros, Freddo cappuccino will rise to 4.50 – 4.60 euros from 4 euros today, and Greek coffee will be sold for at least 2.80 euros from today.

The AADE circular clarified its position, stating that the standard VAT rate of 24% applies to the on-site consumption of all types of coffee, cocoa, tea, chamomile, and other beverages. After July 1, 2024, the reduced VAT rate of 13% will continue to apply to the delivery of non-alcoholic beverages, juices, and beverages (take away and delivery), including coffee, cocoa, tea, chamomile, and other beverages.

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