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tagged: all-inclusive packages, evangelos venizelos, Finance Minister, Greece, tourism, VAT 13% 6.5% 23%Greek VAT Insanity: 6.5% for Foreigners, 23% for Greeks
Posted by keeptalkinggreece in Economy, Tourism
That Greece is an absurd country I knew the moment I decided to return from living abroad over some decades. But it was beyond my vivid imagination that I will have to experience this, day by day – and even moment to moment. With a decision that touches the limits of European constitution because of discrimination against the citizens of this hapless country, the Finance Minister announced that the increased VAT of 23% on catering goods will be paid only by the Greeks -meanwhile known also as money-spewing machines!
Earlier on Monday, Finance Minister Evangelos Venizelos clarified that the increased VAT from 13% to 23% will apply to restaurants, taverns, cafes and hotel restaurants. However if you buy an All-Inclusive package abroad, you will have a 6.5% VAT. Greeks who will buy similar packages in the country will pay 23% VAT. This distinction aims to make Greece competitive for foreign tourists and kill local travel agencies (who cares, eh?).
The new increased VAT regulations are as complicated as they can be: there is a different VAT for consuming sitting or standing (restaurant/cafe), different for take away (but only if you take it yourself, not through delivery boy).
In short a pizza has four different VAT depending on whether you sit, stand, walk or lay (hotel room/all-inclusive).
Greeks commented on internet forums and spoke of “tax labyrinths”, “Second-class citizens” and “incredible bureaucracy”. Others proposed “to travel to London and buy an all-inclusive package there.” I propose buy directly from a foreign travel agent through internet.
Somebody brought a joke: A tourist go to an Athens bordell and asks about the prices. The lady tells him, this… 80 euro, that 65… blow job 15 euros. Why so cheap? Oh it has low VAT, we have it in the category “drinks to take away”.
At the very end, I foresee that each and every Greek will have his own-tailored VAT.
Athens is on race to get revenues and forget that indirect taxes like VAT have to return to citizens and not just to Greece’s lenders.
PS Wait until the VAT regulations apply on September 1st – then the whole insanity will really break out. Take care and beware of waitress playing economists HA!
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just a note to the ignorant. greeks get charged half price for vacation packages sold here that foreigners pay full price for. so even if this did happen, i’m pretty sure 23 percent tax comes out to much less than double the actual vacation price with less tax.
of course, the 23% will not apply to the whole package but just to the food/drink part of it. You seem not to include the flight-price that is incl in the packages sold abroad.
[...] Greek VAT Insanity: 6.5% for Foreigners, 23% for Greeks That Greece is an absurd country I knew the moment I decided to return from living abroad over some decades. Source: http://www.keeptalkinggreece.com [...]
I read it would be 13% for foreign bookings. But who cares, this is madness and will be thrown out in the European court in Strassburg if not by the European Commission before that. The mind boggles when you try to follow this to it’s concequences.
But while my brain was melting down I read further and found this “Venizelos further suggested that there will be no objective criteria to determine taxpayers’ incomes in the way they were previously, but noted that there would be certain “combined criteria” based on an “algorithm,” “so as to reveal the real turnover and the actual income.” However, he refrained from offering more details about how this system will operate; it will affect about 1 million self-employed professionals.”
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“…there will be NO objective criteria…”??? Come again? No it will be “based on an ALGORITHM…” And my mind just shut down at that moment…
there will be ojective AND income criteria, Antonis. I will try to post about it. Wait to see what property owners will pay for 2011 lol. At the very end we will pay taxes according to what the state needs and not according to income.
Suddenly Anarchism does not seem so bad an idea after-all… *sigh*
Cant wait for that report KTG.
Right now, so many people here are not only trying to keep their heads above water but are swimming against the tide with weights on their feet progressively getting heavier. Every single government action is doing the very opposite of what is needed and far from unraveling bureaucratic red tape is tying this country up in tighter knots
how well said, Molly! We will all end with a heavy nervous break down!
[...] KeepTalkingGreece: Greek VAT Insanity: 6.5% for Foreigners, 23% for Greeks [...]
I think Greeks are clever enough to just book teh vacatoin over the internet and pretend they are from London online and get the discount anyways.
I don’t think they should pretend they live abroad. internet has no borders. Meanwhile it seems Greek gov takes this decision back as “it is against the EU legislation”. Ha! I could tell them right away …