The wonderful world of Greek taxes labyrinth and its implementation. Remember the measure that scrapped the reduced Value Added Tax in six Greek islands? Less than two weeks after the implementation of the V.A.T. hikes and the total confusion prevails as to what rates to implement. The measure caused dozens of practical difficulties as local businesses and hotels got apparently Out of Order when it came to what V.A.T. rates to implement for goods and services outside these six islands where the reduced V.A.T. is still valid or in areas where the new hikes are implemented.
Today, the General Secretariat of Public Revenues felt obliged to issue a list of clarifications for the implementation of the new V.A.T. on Rhodes, Skiathos, Mykonos, Santorini, Naxos and Paros. Because real life, consumption and business transactions can be oh so damned difficult, especially when it concerns different and double measures – the V.A.T that is – in the same geographical region.
Mykonos, Santorini, Naxos and Paros has now V.A.T. rates of 6%, 13% and 23% while on the rest of the Cyclades island group the V.A.T. remains low with rates 5%, 9% and 16%.
The same problem applies to Rhodes of the Dodecanese island group and Skiathos of the Sporades.
Below the GSPR clarifications with examples – Read and Enjoy 🙂
The Boat/Ferry sailing from Piraeus to Andros-Tinos-Mykonos- Folegandros. Passengers’ tickets leaving from the port of Piraeus are charges with 23% VAT independet of their destination. Passengers with a ticket Andros-Tinos and passengers with Andros-Folegandros or Tinos-Folegandros will be charged with 16% even if the ferry will make a stop at Mykonos.
The Fava Beans: Supposed a producer based on Santorini delivers packed fava beans to businesses based in Athens, Mykonos, Naxos and in natural persons living in Euboia, Crete and Salamina. All sales deliveries will be subject to 13% V.A.T. Info-notice: best fava is grown on Santorini.
The Dairy Products: Company based on Naxos that delivers dairy products produced by local cooperative to ‘taxpayers’ who live on Kos, Lesvos and Chios. V.A.T. is 9%.
The Meat: Company based on Mykonos that delivers fresh meat to a super market with its headquarters on Rhodes and subsidiaries on Samos and Syros. The charge will be on the HQ on Rhodes, the delivery on the subsidiaries. V.A.T. will be 9%.
The Appliances: Company based on Paros delivers to a private person on Antiparos an air-conditioner. Despite the fact that Antiparos is still subject to old/decreased Value Added Tax, this transaction is charged with 23% because the person receiving the goods is a ‘natural person’. But if this same ‘natural person’ has also a “private business” and buys this A/C for his ‘Rent Rooms’ business and transports it by himself then the V.A.T. is 16%.
The Building materials Company on Skiathos issues an invoice for a company on Skopelos, but it delivers the material to X village on Euboia. The V.A.T. is 23% and please don’t ask me to translate the explanation.
The Engineer: an engineer is located on Rhodes and provides construction site supervision services for the construction of tourist residences on the island of Karpathos. These services are subject to VAT 23%.
The Bus I make it as short as possible: if the taxable tourist bus operator is based on Andros and makes a contract with a hotel on Santorini to transfer tourists from/to the Santorini airport this service is subject to 23% V.A.T. And that’s because “passenger transport services and goods for the purposes of the reduced 30% rates, and given the condition of the existence of a permanent establishment in the island where such reduced rates apply for loading and the second condition for the physical execution of the service corresponding to the island, considered the place (the island) departure and the place (the island) arrival of persons and goods and not intermediate stations can be inserted to complete the route.” What??? That’s automatic translation and I can tell you this: the original in Greek wasn’t any better!
The hotels Regarding the accommodation and catering services and other services provided by hotel companies towards a unified price without the differentiation of the different V.A.T. rates being possible, the following is valid: Bed & Breakfast… You don’t seriously expect me to translate this! Ask your accountant or read here in Greek!
If I am not wrong, I understand that the general rule is:
Delivery of goods by a taxable person located on one of the above mentioned six islands to any person located on the same islands or other islands and mainland areas is subject to V.A.T. rates 23%, 13% and 6% depending on the rate the delivered good is subject to.
Or something like that. Or not. Or anything and everything. There are also some provisions on outstanding V.A.T. to be paid before and/or after the exemption of the reduction of the hike of I’m-getting-crazy-here-and-nobody-cares.
PS I was afraid that with a left-wing government things would turn serious and we would be at risk to lose our sense of humor. And laughter. Thank Goodness, I was wrong.