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Greece EU VAT bail out dispute

  • EU VAT
  • 15 December 2016 | Richard Asquith

Greece EU VAT bail out dispute

Greece announced this week that it would not proceed with a planned VAT raise on certain holiday islands. The austerity measure has been agreed with major debtors of the country as part of a bail out programme stretching back to the Euro crisis.

In addition to the VAT increase delay, the government also announced a one-off payment to pensioners.  The two measures have meant that creditors have reacted with a pause on short-term debt relief.

Greece raises VAT on island

From 1 January 2017, Greece had planned to withdraw the 30% VAT rate discount from the last group of holiday islands.

The islands included are: Lesvos, Chios, Samos and Kos.

The discount was given from the mainland standard VAT rate to help curtail reducing population rates on the remote islands.  The standard VAT rate in Greece is 24% since June 2016.

 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.