VAT Hike Takes Effect On Popular Greek Islands From October 2015

Greek islands with tourism growth and high per capita income will as of October 1 see a 30 percent value-added tax (VAT) hike on all their goods and services, doing away with a special reduced tax rate which was applicable until now.

According to the new law, the islands will be divided into categories depending on per capita income and tourism development and taxed accordingly. A reduced VAT rate will continue to apply on remote islands while those with limited tourism will see the tax hikes take effect on June 1, 2016.

The popular Cyclades including Mykonos, Santorini, Paros, Naxos, Milos, Syros and Tinos, as well as the Sporades isles such as Skopelos are expected to be the first to bear the brunt of the new taxing regime.

To read more, please visit: Greek Travel Pages