Greek luxury goods and reduced basics VAT

Wed 11th Feb 2015

The new Greek anti-austerity government has announced a range of tax reform measures designed to ease the burden on the population.

These include:

  • A new Greek VAT rate on luxury goods (high-value cars, boats, aircraft, helicopters, swimming pools, watches, perfumes etc.).  It is not clear that this would be permitted by the European Union since member states are only permitted a standard and two reduced VAT rates under the EU VAT Directive.
  • A reclassification of many basic foodstuffs from the reduced VAT rate of 13% to the second reduced rate of 6%.

Other measures announced include:

  • the right to deduct rental income costs for people with an annual income below €15,000
  • a Large Property Tax on property, bank accounts and works of art
  • the withdrawal of the unpopular Single Property Tax