Extension of the scope of VAT exemption for dance schools

On 8 May 2026, the Council of Ministers approved ΚΔΠ221/2026 amending Schedule 7 of the VAT Law which  includes the VAT exemption applicable to ballet schools. Paragraph 9(d) of  Table A is amended by the replacement of the term “ballet” with the word “dance”.

It is understood that this amendment should be interpreted as expanding the scope of the VAT exemption from its previous application solely to ballet schools. 

Accordingly, the exemption would continue to cover ballet-related education while also extending to dance schools that provide lessons, education, or training in all forms of dance.

Practical Impact and action points for businesses

• Determine whether other revenue sources are considered as "closely related" to the provision of dance lessons;
• Evaluate the time of supply for ongoing services to determine the cut-off point for collecting VAT;
• Consider the impact (if any) on pricing policies for charges to customers;
• Review other sources of income to determine whether your business is a "partially exempt" business and reconsider input VAT recovery policies;
• If your business only has exempt income you may need to de-register from VAT. 
   

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