Greece will extend the preferential value-added tax policy of “Refugee Island” until June next year.
On December 4th local time, the Greek government announced that it would extend the preferential value-added tax policy of Greece’s main “refugee islands” until June 2021.
The five islands of Lesbos, Samos, Chios, Leros and Kos in the eastern Aegean Sea in Greece, have affected the daily life and economic production activities of the local people to varying degrees due to the large number of refugees and illegal immigrants.
Therefore, the Greek government has decided to reduce the value-added tax rate on the five islands since July 2019.
Specifically, compared with other parts of Greece, the value-added tax rate of standardized processed food, alcoholic beverages, tobacco and other value-added tax has been reduced from 24% to 17%; the value-added tax rate of ordinary food, hotels, tourism has been reduced from 13% to 9%; and the value-added tax rate of drugs, newspapers and books has been reduced from 6% to 5%.
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