Greek luxury goods and reduced basics VAT
- Feb 10, 2015 | Richard Asquith
The new Greek anti-austerity government has announced a range of tax reform measures designed to ease the burden on the population.
- 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