Greece’s interim Finance Ministry has decided on Monday to freeze the 23% value added tax on private education, which was legislated on August 14, until next year.
According to Greek newspaper “Kathimerini,” the European Commission sent a letter to the Education Ministry on Friday saying that the VAT on private education institutions is against EU regulations. They also gave the Greek government a deadline to scrap the bill.
The establishment of 23% VAT on private schools and private tutoring was one of the measures the Greek government proposed as part of the bailout agreement.
The new tax is expected to push tuition fees at private schools and tutoring establishments by as much as 2,000 euros per year, the “Kathimerini” report said. About 80,000 students and their families would be affected by the new levy.
The General Secretariat of Public Revenue is looking for alternative revenues to counterbalance the revenues from VAT on private education.