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Abolition of reduced VAT rate in the remote islands from 01.01.2017

Since when is repealed the reduced rate of remote islands? In accordance with the provisions whose law established the abolition?

The gradual abolition of the reduced rates in remote islands was established in 2015 to case d of paragraph 1 of article 1 of law 4334/2015, which reads as follows:

“The planned reductions of VAT rates in paragraphs 4, 5 and 6 of article 21 of law 2859/2000 abolished gradually as follows:

On 10.01.2015 the first group of islands, from 01.06.2016 the second group of islands from 01.01.2017 to other islands.

A joint decision of the Interior and Administrative Reconstruction and Finance Ministers΄, defined more specifically the islands falling within the above settings of paragraph 4 of article 21 of law 2859/2000. “

So from October 2015, purchases and sales to the tourist islands of Naxos, Paros, Mykonos, Santorini, Rhodes and Skiathos bear down on a VAT rate of 23% (this was true up to May 2016, while the first day of June the rate was adjusted to 24% (Law 4389/2016)).

After the first increase in the VAT rate in the islands, followed by a second, in which not only increased the VAT rate of the islands but also increased the standard VAT rate, with effect from 1.6.2016 the islands of Thassos, Andros, Milos, Syros, Sifnos, Karpathos, Skyros and Allonisos all the receipts indicate, VAT 24%.

Now, it is expected the third and final wave of the VAT hike in Greek remote islands, which will apply from the first day of the New Year (2017). So,  the islands like Lesvos, Chios, Serifos, Skopelos and many others, the new year will find professionals and businesses to double the VAT rate on cash machines and computerized systems, which from 17% will It is now 24%.

However, in accordance with the announcement of the Prime Minister on December 7, 2016, this provision should be temporarily postponed for the north and eastern Aegean islands because of the reception of refugees.

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