Six Greek holiday islands lose VAT rate subsidies this week
Mykonos, Naxos, Paros, Rhodes, Santorini and Skiathos will become the first six islands to lose their VAT rate subsidies as part of Greece’s bailout package.
The islands will see their VAT rates move to the national level of 6%, 13% and 23% this week. The current subsidised rates are 5%, 9% and 16%.
Other islands will likely lose their VAT rate reductions in June 2016 and 2017.
The move is going ahead despite being met with much opposition over fears it could damage the key Greek tourism industry.
But Richard Asquith, VP global tax at tax compliance company Avalara, said with Greek tourism industry standing up so well to the recent crisis, the government had little argument against withdrawing the subsidy.
"However, it may put a question mark over similar subsidies in countries like Ireland," he added.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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