Tax & Accounting Blog

Greece: Possible Reduction in VAT on Tourism

Indirect Tax, Transaction Tax, VAT Tax Rates July 11, 2012

Greece’s new coalition government, elected on June 17, is considering reducing the VAT rate applied to hotels and restaurants in order to bolster the tourism industry. The plan would reduce the VAT rate on those sales from the current 23% to 12%-15%. Any change to the VAT rates will be subject to agreement with the European Central Bank, European Commission and International Monetary Fund.