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Greek luxury goods and reduced basics VAT

  • VAT
  • 10 February 2015 | Richard Asquith

Greek luxury goods and reduced basics VAT

The new Greek anti-austerity government has announced a range of tax reform measures designed to ease the burden on the population.

These include:

  • A new Greek VAT rate on luxury goods (high-value cars, boats, aircraft, helicopters, swimming pools, watches, perfumes etc.).  It is not clear that this would be permitted by the European Union since member states are only permitted a standard and two reduced VAT rates under the EU VAT Directive.
  • A reclassification of many basic foodstuffs from the reduced VAT rate of 13% to the second reduced rate of 6%.

Other measures announced include:

  • the right to deduct rental income costs for people with an annual income below €15,000
  • a Large Property Tax on property, bank accounts and works of art
  • the withdrawal of the unpopular Single Property Tax

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.