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Greek explores 18% VAT with credit card discounts

  • VAT
  • 17 May 2015 | Richard Asquith

Greek explores 18% VAT with credit card discounts

The Greek Ministry of Finance is continuing to review a potential new VAT rate regime as it seeks a settlement with its debt creditors.

Greece had proposed an 18% flat rate VAT scheme earlier.

The latest incarnation is based around an 18% rate, but with a 15% rate for non-cash purchases (credit or debit cards and bank transfers). This is aimed at incentivizing VAT-declared transactions. This incentive is used extensively in South American countries which have a similar ‘black market’ problem.

The new proposal under discussion also includes an 8% reduced rate for foodstuffs and medicines.

Greek creditors want 20% standard rate

The discussions with the debt Troika (European Central Bank; International Monetary Fund; and European Commission) are progressing slowly. It is understood that these groups want a 20% standard Greek VAT rate with a 7% lower rate for essentials.


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.