The latest announcement from the Greek Ministry of Finance sees an end to reduced VAT rates on six popular holiday islands as part of the country’s third bailout agreement.
From 1 October 2015 the reduced VAT rates of 16%, 9% and 4% (according to the good/service) will no longer apply to the Greek islands of Mykonos, Rhodes, Skiathos, Naxos, Paros and Santorini.
The islands will instead apply the three standard rates of 23%, 13% and 6%. The Ministry advises the reduced VAT rates still applicable on other, less developed islands will be abolished from 2017, however a review of the increases is planned in 2016 if Greece surpasses revenue targets in key focus areas.
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