Hospitality and catering sector: Directly the new action, with a 330 million budget, via PA for the provision of working capital to hospitality and catering businesses.
The future of this sector does not concern just those directly involved in it. In this critical period, we all realised how penetrating this sector is to our society and the Greek economy.
A new, big PA, exclusively for the hospitality and catering sector, worth 330 million, comes through working capital funding to offer relief and continuity to businessmen of the industry.
The goal of this action is the purchase of raw materials for the first 2-3 months of their reopening, as implemented by the Minister of Development & Investment.
The criteria of inclusion in the action, as announced, are the following:
- Reduction of the annual turnover for 2020 compared to 2019, bigger or equal to 30%.
- For businesses founded in 2019, an equivalent number of operating days is estimated for the turnover decrease.
- Those founded in 2020 enter the action ipso facto.
- Hospitality and catering businesses still under construction in 2019 and starting having income in 2020 are considered as founded during 2020.
- Hospitality and catering businesses required to submit periodic VAT returns.
The opening date for applying will be defined by the state’s approval by the European Union, while applications will be accepted until July 31st 2021, thus allowing seasonal businesses to be included.
The evaluation will be immediate and the disbursal of the subsidy will be performed right after the approval of the application and the inclusion. Businesses must spend the subsidy until 12-31-2021. The check is conducted based on the periodic VAT returns and the declared expenses.
Contact an experienced BSS partner today, because evaluations and approvals are expected to be performed shortly.
Around 34,000 of the total 77,000 businesses of the industry are expected to get substantial aid, which will amount to around 7% of their annual turnover and as much as 100,000 Euros, to be used as working capital for the first necessary expenses for their reopening.
Franchise businesses will also be entitled to a subsidy, provided they meet certain regulatory PA criteria.
The same applies to businesses that do not have hospitality and catering as their main Activity Code Number, but it generates most of their turnover.
Budget: 330 million as working capital to hospitality and catering business for the purchase of raw materials for the first 2-3 months of restarting their operation.
It should be noted that:
- A) The aid sum that will be given from the action must do not exceed 70% of the aggregate of the amounts of the Codes 361, 363 and 364 of the periodic VAT returns document for the year 2021.
- B) The aggregate of the public funding from the current action, of the amount of public funding given as aid to businesses from the COVID-19 pandemic from the Regional PA Business Programs across the country in the form of subsidies must not exceed 100% of the aggregate of the sums written in Code 367 of the periodic VAT returns document for 2021.
In case either (A) or/and (B) applies, then the amount of public financing of the current action is deemed as unduly paid and is returned by the aid recipient.
Because of the inclusion of the temporary state aid frame of the EU, as pandemic action, it will be approved by the European Commission too.
With BSS by your side during the process of submitting a request for PA funding, you have as allies:
- A holistic approach, covering all needs regarding application, financing, accounting, and consultancy support.
- 97% approvability.
- Know-how.
- Experience.
- Excellent collaboration with creditors and entities.
- Cooperation with the decision-making centres.
- Speed.
- Adaptability.
- Effectiveness.
For more information contact us here.