Despite announcements about freezing value added tax on private education, Greece’s finance ministry decided to impose the 23 percent VAT late on Monday.
The 23 percent VAT on private education was legislated on August 14 as part of the measures the Greek government proposed in order to finalize the bailout agreement with creditors.
Private schools have to change their tax status and submit a statement of the change to tax authorities until September 8. From then on they will be liable to pay the VAT tax.
According to Greek newspaper “Kathimerini,” the European Commission sent a letter to the finance 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 new tax is expected to push tuition fees at private schools by as much as 2,000 euros per year and affect 80,000 students and their families.