New Democracy accused the opposition of spreading fake news regarding alleged VAT reduction mandates imposed by the EU. Specifically, the party emphasized in an announcement that claims suggesting Greece has not complied with mandatory VAT reductions on medicines, food, and essential goods imposed by the EU, and therefore faces fines and will be taken to the European Court of Justice, are fake news.
ND: “There is no ‘indictment’ or ‘fine'”
According to New Democracy, the truth is as follows:
“The opposition deliberately insists on connecting and confusing the letter the government received regarding the incorporation of mandatory elements of directive 2022/542, with which Greece fully complied, with VAT rates that constitute exclusively national competence under EU law.
Let us explain:
The EU does not impose horizontal/mandatory VAT reductions by product category.
The European framework (EU Directive 2022/542) gives member states the ability to decide at national level which categories will apply reduced rates.
There is no decision requiring Greece to further reduce VAT on specific goods (such as food, medicines, essential goods, etc., which are already at reduced rates). There is no ‘indictment’ or ‘fine’ because Greece did not reduce VAT on specific categories.
The EU simply sets the rules for which goods may optionally be included in reduced or super-reduced rates and which are not permitted to be reduced. Each country decides for itself which categories of goods/services will apply reduced or super-reduced rates. This stems directly from Article 98 of the directive and the relevant annex.
Current European procedures concern different mandatory provisions that our country has already adopted with the passage of the customs code. Similar European procedures were initiated in many countries simultaneously.
This involves transposing into national law the mandatory articles of the directive, such as extending the small business regime to taxpayers established in another member state and special regulations concerning imported goods, which in our country were adopted with the customs code voted in July 2025.
Therefore, claims about ‘fines for not reducing VAT on specific goods’ are completely unfounded.
On the contrary, it should be noted that over these 6 years, the New Democracy government has reduced VAT on a series of goods and services including transport (land, air and sea), fertilizers, animal feed, agricultural machinery, coffee and non-alcoholic beverages delivered as goods, baby products, tourist packages, gyms and dance schools, cinemas, a series of goods related to public health (personal hygiene and protection items, dialysis filters and lines, defibrillators) and others.”
