Greece has accepted reforms including significant pension adjustments and increases to value added tax, an overhaul of its collective bargaining system, measures to liberalise its economy and tight limits on public spending. Today some of the agreed VAT changes come into force.
Below is a summary of the most important changes.
Main changes in Greek VAT:
|
Goods or services affected
|
Rate change
|
Date the change will come into effect
|
|
Rice, pasta, pastries, sausage, coffee, tea, sugar, other basic foodstuffs
|
13%→23% |
20 July 2015 |
|
Restaurant services
|
13%→23% |
20 July 2015 |
|
Hotel accommodation
|
6.5%→13% |
October 2015 |
Change in VAT rates applicable for Greek islands:
| |
Tier I
|
Tier II
|
Tier III
|
Tier IV
|
|
Areas covered
|
Ionian islands
Crete
Aegina
Hydra
Several smaller ones |
Most popular Aegean islands, including Santorini & Mykonos |
Less developed Aegean islands |
The most remote islands |
|
What will change |
Regular VAT rate to be upheld |
30% VAT discount to come to an end. Regular VAT rates to be applied
|
30% VAT discount to come to an end. Regular VAT rates to be applied
|
30% VAT discount to be upheld |
|
Date the change will come into effect |
Immediately |
1 October 2015 |
1 January 2016 |
Immediately |
Corporate Income Tax
26%→29% for 2015
Corporate Income Tax (advance)
80%→100%
55%→75% for personal companies
Tax on insurance premiums
10%→15% (General IPT rate)
Solidarity Tax
1.4%→2% for Annual Income between €30,001 - 50,000
2.1%→4% for Annual Income between €50,001 – 100,000
2.8%→6% for Annual Income between €100,001 – 500,000
2.8%→8% for Annual Income €500,001+
Need more information? Contact our expert team in Greece.
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