VAT hike for Cycladic Islands comes into effect in October

The reduced VAT rates on the Cycladic islands of Myconos, Santorini, Paros, Naxos, Milos, Syros and Tinos will be abolished as of the 1^st of October 2015, as part of the first group of islands to lose the 30% discount.

The abolition of the 30% discount on VAT rates will continue with a second group of islands on the 1^st of June 2016, with the abolition concluding with a third group of islands on the 1^st of January 2017.

On Thursday the Minister of Finances Euclid Tsakalotos met with Alternate Finance Ministers Giorgos Houliarakis and Tryfon Alexiadis and the General Secretary of Public Revenue Katerina Savvaidou to discuss the measure, but have not yet finalized the list of islands to be included in each group.

At present the VAT rates that apply on the islands are 5%, 9% and 16%, however according to the recent bailout agreement, the rates will increase to 6%, 13% and 23% respectively, the same as on mainland Greece.