Greece | Application of Discounted VAT Rates to Aegean Islands Extended until December 2018.

On 29th June 2018, a legislative act was published in Greece’s Official Gazette, extending the application of discounted rates of VAT to five Aegean islands until the end of the year. This favourable tax regime was previously due to expire on 30th June 2018.

Currently, the islands of Lesbos, Chios, Samos, Kos and Leros benefit from a 30% discount to the normal Greek rates of VAT. Therefore, VAT is applied at a standard rate of 17%; a reduced rate of 9% and a super-reduced rate of 4%.  These special VAT rates do not apply to supplies of alcohol, tobacco or transportation.

Mainland Greece and all other Greek islands are subject to the normal standard, reduced and super-reduced rates of Greek VAT which stand at 24%, 13% and 6% respectively.