Greek social partners have sent a letter to the Ministry of National Economy and Finance asking to raise the daily tax-free limit on employee meal vouchers from 6 euros to 10 euros.
According to data from IME GSEVEE, one in four employees in Greece receives vouchers or meal cards from their employer on a regular or occasional basis. The proposal comes as strong tax revenue growth in Greece has been driven primarily by higher collections from income and consumption taxes, reporter Sissy Stavropierrakou noted.
In Greek industrial relations, social partners represent the collective employer associations and labor unions that negotiate workplace policy with public authorities. The Ministry of National Economy and Finance oversees tax legislation and state revenue collection from its headquarters in Athens.
Meal voucher tax rules
Under current Greek tax law, employer-provided meal vouchers receive special tax treatment and are exempt from income tax up to 6 euros per working day. That daily exemption amounts to approximately 1,400 euros per employee annually.
To qualify for the exemption, meal vouchers must be registered in the employee's name and exchanged exclusively for meals, prepared foods, ready-to-eat items, or beverages. They must be used within a contracted network of participating merchants governed by agreements between the voucher issuer and retail businesses.
If the value of a meal voucher exceeds the 6-euro daily limit, the excess amount is classified as a benefit in kind and taxed as employment income. If the government approves an increase in the daily threshold, an equivalent adjustment will be made to the tax-free limit.
Benefits in kind are non-wage perks provided by employers to staff, ranging from food allowances to corporate vehicles. Under the Greek tax code, non-cash compensation above statutory thresholds is added directly to an individual's gross taxable earnings.
Gift checks and shopping vouchers
Employer-issued gift checks and shopping vouchers are subject to a separate tax framework. These perks are treated generally as benefits in kind and remain tax-free as long as their combined annual value does not exceed 300 euros per worker.
When the total value of gift checks or shopping vouchers exceeds 300 euros within a single year, a tax liability is triggered. The entire non-exempt amount is included in the employee's taxable income, subject to specific statutory exceptions for exempt benefits.
The survey data supporting the reform request comes from IME GSEVEE, the research institute of the Small Enterprises' Institute of the Hellenic Confederation of Professionals, Craftsmen and Merchants. The institute monitors economic trends, employment conditions, and operational costs for small businesses across Greece.
Value added tax categories
Value-added tax treatment for commercial vouchers depends on whether a voucher is classified as single-purpose or multi-purpose. For single-purpose vouchers, both the place of taxation and the applicable VAT rate are known at the moment of issuance, requiring VAT to be remitted when the voucher is issued or sold.
Examples of single-purpose vouchers include a voucher for a hotel stay in Crete, where the service location and tax rate are determined in advance. A voucher for clothing or footwear from a specific store chain in Greece also qualifies as single-purpose if all products carry the same VAT rate. Crete is the largest island in Greece and a primary hub for the country's tourism industry.
Multi-purpose vouchers apply when the place of taxation or the VAT amount cannot be determined with certainty at issuance. For these vouchers, VAT is paid upon redemption rather than when the voucher is sold. Examples include vouchers usable across an international hotel chain in multiple countries or supermarket vouchers used to purchase goods subject to varying VAT rates.
Greece applies Value Added Tax to goods and services across multiple rate tiers. Under the Greek Tax Procedure Code, voucher circulation can involve four main parties: the issuer who creates the voucher, the intermediary who resells it, the supplier who provides the underlying goods or services, and the final holder who redeems it.
