Greece Extends VAT Reduction For Five Islands Until December 2020

The Greek Ministry of Finance has recently confirmed  the signing of a joint decision that extends the 30% reduction of the standard VAT rates for the islands of Chios, Kos, Leros, Lesbos, and Somos to 31 December 2020. Without the extension, standard VAT rates would have applied from 1 July 2020. The five islands are the last islands eligible for the VAT reduction, which has been phased out for other Greek islands as part of Greece’s bailout agreement with the EU and the IMF. Unless a further extension is approved, standard VAT rates will apply for the islands from 1 January 2021.