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principal / Greece approves new VAT rate and introduces additional tax rate increases
As announces last April, the Greek government has approved an increase of the standard VAT rate from 23% to 24% effective from 1 June 2016. The implementation date to the increased VAT rates was brought forward one month as per the decision made last 22 May by the Greek Parliament.
In addition to these changes, the Greek government has also increased VAT rates on a number of Greek islands (previously benefiting from 30% rate reduction). There was also an increase of the excise duties on tobacco, alcoholic drinks, petrol and diesel. Also coffee will be taxed with a higher VAT rate as from 2017 and internet and cable TV will be subject to a 5% and 10% tax respectively.