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Reduced VAT Rates Abolished On Six Greek Islands
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.