Greek Government Announces Taxation for Private Education

The Greek government announced a new proposed legislation that would impose VAT taxation on private education institutions.

The Governmental Council on Economic Policy and the Governmental Council for Social Policy met on Tuesday to discuss a number of priorities for the government, including VAT taxation on private education.

Greek Education Minister Nikos Filis addressed the Greek media and announced that VAT taxation will vary depending on the type of private institution. Kindergartens and pre-schools will not be taxed. Tutor centres and private institutions for vocational training will be taxed by 6%. Private schools will be taxed by 13%.

The decision for this taxation scheme was pushed back multiple times throughout the past few weeks. With Tuesday’s announcement the Greek government has essentially scrapped any plans it had to tax private education institutions with the same central VAT rate of 23%.

In response to a letter penned by a New Democracy European Parliament Member and a party official, European Commissioner for Economic and Financial Affairs Pierre Moscovici noted that the European Commission had never asked the Greek government for a change VAT legislation for private education.