As of June 1, the top value-added tax (VAT) rate in Greece will rise by one percentage point, from 23 percent to 24 percent, as agreed between the government and the country’s international creditors. As a result, thousands of goods and services are expected to suffer hikes in prices.
The VAT hike is included on a list of measures in an omnibus bill that recently passed in parliament and includes indirect tax hikes of some 1.8 billion euros.
June 1 also marks the day that a second group of Greek islands will lose a special value-added tax status — a 30 percent reduced implementation of all VAT rates — and revert to the nationwide rates of 6, 13 and 24 percent.
The abolition of the special value-added tax status on the Greek islands is in accordance to the third bailout package signed between the government and the country’s international creditors last year.