Greece | Extension to Aegean Islands’ Preferential VAT Rate Treatment in 2019

Unlike the rest of the Greek islands, throughout 2018 the islands of Lesbos, Chios, Samos, Kos and Leros have continued to enjoy a 30% discount to the normal VAT rates in Greece. Prior to entering the EU bailout programme, Greece’s remote islands had benefited from this special VAT rate regime for many years.

This means that on these islands, instead of supplies being subject to VAT at the standard rate of 24%, the reduced rate of 13% and the super-reduced rate of 6%, supplies made there have VAT rates of 17%, 9% and 4% applied respectively.

This treatment had been due to expire on 31st December 2018. However, at the end of last year Greek Migration Minster, Dimitris Vitsas, announced that the discounted rates would continue to apply in 2019.  A recently issued press release reports that the application of the 30% discount is extended until 30th June 2019.

These special rates do not apply to supplies of alcohol, tobacco or transportation.