IELKA: Lower VAT rate will affect around 15 pct of supermarket products

Around 15 pct of the products offered in supermarkets (7,500 products) will be affected by a reduction in the VAT rate, the Research Institute of Retail Consumer Goods (IELKA) said in an analysis released on Tuesday.

The analysis is based on Hellenic Statistical Authority’s family budget data and interviews with market experts. According to this data, annual purchases per household on food products, beverages and alcohol total 3,668.40 euros. After replacing the 24 pct VAT rate with the lower 13 pct VAT on the products covered by the law 4611/2019, this figure falls to 3,582.41 euros, or 2.34 pct lower.

Practically, these products represent around 26 pct of supermarket sales, or an average 15 pct of all products (around 7,500 product codes). The analysis said that Greek households will save more on purchases of bakery, meat products, cereals and snacks.

IELKA said that despite these changes, the VAT in Greece remained one of the highest in Europe, significantly higher than the UK (0 pct), France (10 pct and 5 pct), Spain (10 pct and 4 pct), Portugal (13 pct and 6 pct).