The 23% VAT rate in private education that was introduced in the third bailout agreement will be postponed, according to a legislative act to be issued by the caretaker government.
According to the third bailout agreement that recently went through Parliament private education organizations will face a 23% VAT rate. The General Secretariat of Public Revenue initially gave such tutoring schools up until the end of August to carry out the necessary changes, however the relevant circular was not issued.
As such, the caretaker government decided to postpone the introduction of 23% VAT for private tutoring for two months, as it is not in the position to legislate. Reportedly the European Committee, European Central Bank and International Monetary Fund did not pose any serious objections.
The controversial introduction of a 23% VAT rate in private tutoring has been estimated to affect about 80,000 families.
