Greek Tourism Sector Calls for VAT Rate to Not Exceed 10%

The single value-added tax (VAT) rate on the Greek tourism package (accommodation and food services) should not exceed 10 percent on average nor the levels of competitor countries, the Greek Tourism Confederation (SETE) and the heads of the country’s tourism sector associations* said on Monday in a joint statement.

Through the statement, the Greek tourism sector associations jointly reaffirmed their support to the government’s national effort to strike a deal with the country’s creditors.

However, according to the statement, if the VAT rate on tourism exceeds 10 percent, the Greek domestic sector will suffer a severe blow and the number of job losses from 2016 and on will surpass 200,000.

“It would be the largest recessionary measure from the beginning of the Greek crisis”, the statement reads.

The heads of Greece’s tourism sector associations also reminded that other countries have a favorable VAT regime for sensitive island regions such as the Canary Islands (0 percent VAT rate) and Corsica (2 percent VAT rate).

* The 14 Pan-Hellenic Unions of Tourism Enterprises that SETE represents include HHF (Hellenic Hotel Federation), SEEDDE (Business Confederation of Rented Rooms and Apartments of Greece), SΕΕΝ (Association of Passenger Shipping Companies), HAPCO (Hellenic Association of Professional Congress Organizers), HATTA (Hellenic Association of Travel & Tourist Agencies), HPYOA (Hellenic Professional Yacht Owners Association), GSRA (Greek Car Rental Companies Association), GEPOET (General Pan – Hellenic Federation of Tourism Enterprises), HACA (Hellenic Air Carriers Association), ELIME (Hellenic Ports Association), AGECO (Association of Greek Exhibition & Conference Organisers), SΑΑΕ (Hellenic Association of Airline Representatives), GMA (Greek Marinas Association) and S.EP.O.A (Association of Organised Branded Food Service Chains).