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Greek VAT delay blocks €15bn bailout funding

  • Jul 12, 2018 | Richard Asquith

Greek VAT delay blocks €15bn bailout funding

The Greek decision last week to extend the discounted VAT rates till January 2019 on five islands impacted by the refugee crisis has led to a delay in the €15bn last round of bail out funding. Greece has failed to consult with its creditors on the move. The islands are: Lesvos, Chios, Samos, Kos and Leros.

The rise in the standard Greek VAT rate of 23% on the islands – which currently enjoy a 30% discount - was linked to the long-running Euro-crisis €86bn bailout from the EU, IMF and European Central Bank. German representatives at the EU highlighted that the continuing tax subsidy would leave a €28m hole in the Greek budget. In return, Greece has committed to looking for savings in other areas, including defence.

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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.