VAT news tagged as "Austerity"


2018 Weaponising VAT

December 4th, 2017

Brexit. VAT fraud. Austerity straitjackets. Global tax wars. These are the colliding dynamics which in 2018 will lead to the UK, and worldwide governments, to undertake drastic measures on VAT and other taxes. This could include an emergency measure to relieve importers/exporters of potential Brexit VAT liabilities, through to the European Commission up-ending the entire …


Greece EU VAT bail out dispute

December 16th, 2016

Greece announced this week that it would not proceed with a planned VAT raise on certain holiday islands. The austerity measure has been agreed with major debtors of the country as part of a bail out programme stretching back to the Euro crisis. In addition to the VAT increase delay, the government also announced a …


Greek luxury goods and reduced basics VAT

February 11th, 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 …


Italy considers 2016 VAT increase as finances worsen

October 17th, 2014

Latest Italian budget briefing notes reveal that the government is considering a new VAT rise. Italy raised its VAT rate to 22% in October 2013.  Italy had already raised it 1% in 2011 from 20% at the height of the Euro currency crisis. As the country’s economy continues to stagnate, and actually slipped back into recession …


Greek VAT flat rate proposal

September 2nd, 2014

Greek is again considering the possibility of a flat-rate VAT regime, consolidating the existing standard VAT rate of 23% with the reduced VAT rates of 13% and 6.5%.  A potential combined rate of 20% has been discussed. The aim is to start unwinding some of the sharp VAT rises of recent times.  Greece went through …


IMF warns Slovakia on VAT rate cut

June 26th, 2014

The International Monetary Fund’s upcoming evaluation on the performance of the Slovakian economy has warned against a potential Slovakian VAT rate cut. This comes as the economy shows improvement from the slump of 2011, and it again meeting many of the Euro currency financial criteria. EU austerity VAT hikes Slovakia raised its VAT rate to …


Greece wants to cut reduced VAT rate

June 8th, 2014

Greece has launched an ambition set of promises on lowering the rates of major taxes. This included cutting the reduced Greek VAT rate from 13% to 12%. The Greek VAT rate increased twice during the financial crisis and is now 23%. Many of goods previously categorised at the reduced rate were subsequently reclassified at the …


Finland decides against VAT increase as taxes rise

March 29th, 2014

The Finnish government announced a raft of tax rises and benefits cuts on 25 March as it aimed to bring its deficit down to 1% of the GDP. The Euro currency target is 3%, but Finland has always insisted that all member of the currency union should take a hard line on austerity measures. VAT …


Why Europe likes austerity VAT rises

August 21st, 2011

With financial markets looking for reassurances on the credit worthiness of the Euro states, VAT is fast emerging as a key strategy to turn around failing deficits. Following many VAT rises in 2009 and 2010, a new wave is upon us, and spreading across the region. In the last year, there have been sharp hikes …