Greek Parliament Votes in Favor of Island VAT Exemptions

The Greek Parliament on Wednesday approved an amendment bill to suspend a planned VAT increase on islands of the northern and eastern Aegean for 2017. All 259 lawmakers who were present voted in favor.

According to the amendment bill, the islands of Lesvos, Lemnos, Agios Efstratios, Chios, Psara, Oinousses, Samos, Ikaria, Kos, Kalymnos, Nisyros, Patmos, Leros, Symi, Astypalea, Chalki, Kastellorizo and Samothrace, will maintain a 30 percent discount on VAT rates for one year.

The aforementioned islands will not be required to revert to the nationwide rates of 6 percent, 13 percent and 24 percent currently applicable across mainland Greece and effective on the rest of the islands as of January 1. Instead rates will remain at 5 percent, 9 percent and 17 percent until December 31, 2017.