The Cabinet approved a VAT law amendment on Thursday. It reduces the VAT rate from 19% to 5% for construction and renovation of public and private buildings intended for exempt educational institutions.
Finance Minister Makis Keravnos said the measure promotes access to quality, modern educational facilities.
What the amendment covers
The change amends the VAT Law of 2000-2025. It applies the reduced 5% rate to:
- Public educational institutions
- Private schools registered under the Private Schools and Institutes Law of 1971
- Private tertiary education colleges registered under the Tertiary Education Colleges Law of 1996
- Any persons, organisations or institutions recognised by the Registrar upon application, provided they directly relate to the services listed above
Keravnos explained that the reduction covers all materials and labour for renovation or new construction.
Duration and review
The Ministry of Finance will review the measure every five years. It will assess fiscal impact and effectiveness, then submit corrective actions to the Cabinet at the end of each period.
Estimated cost
Based on 2023 data, the measure costs about €2 million annually.
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