NewsLocalCompromise sought for reduced VAT

Compromise sought for reduced VAT

During Monday’s House Finance Committee meeting, strong disagreements were expressed by deputies and representatives of parties involved about the reviewed draft bill on applying a reduced VAT rate for the purchase of a primary residence, within the framework of social policy.

More protests were expressed about the distinction between the purchase of a flat and a house. The reviewed text provides that the reduced VAT rate will apply to the first 170 square meters of primary residences of up to 220 square meters with a maximum price of 350,000 euros. Regarding apartments, this will apply to the first 90 square meters for apartments up to 110 square meters and for a total value not exceeding 200,000.

VAT official Nayia Symeonidou said the European Commission has been informed about the reviewed draft bill in August but so far there has been no reply.

KEVE and OEV expressed a disagreement about the distinction between houses and flats, expressing the view that with the new facts of the economy the maximum value must increase to 500,000 euros in both cases.

ETEK representatives said that the minimum square meters for apartments must increase to include three-bedroom flats so that families will not be pushed to build outside the cities.

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