VAT Rate in Greece to Rise on June 1, Second Group of Islands to Lose Reduced Rate

As of June 1, the highest value-added tax (VAT) fee in Greece will rise by one share level, from 23 p.c to 24 p.c, as agreed between the federal government and the nation’s worldwide collectors. Because of this, hundreds of products and companies are anticipated to undergo hikes in costs.

The VAT hike is included on a listing of measures in an omnibus invoice that not too long ago handed in parliament and contains oblique tax hikes of some 1.8 billion euros.

June 1 additionally marks the day that a second group of Greek islands will lose a particular value-added tax standing — a 30 p.c decreased implementation of all VAT charges — and revert to the nationwide charges of 6, 13 and 24 p.c.

Sifnos Island. Picture © Maria Theofanopoulou

The islands of Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonissos, Kea, Antiparos and Sifnos will lose the particular 30 p.c low cost on VAT charges.

It’s reminded that the islands of Santorini, Mykonos, Naxos, Paros, Rhodes and Skiathos misplaced the particular value-added tax standing as of October 1, 2015.

The abolition of the particular value-added tax standing on the Greek islands is in accordance to the third bailout bundle signed between the federal government and the nation’s worldwide collectors final yr.