Island VAT generates confusion
If you wish to travel from Piraeus to the island of Folegandros, the value-added tax on your ferry ticket will be 23 percent. However, if you take the ferry from Andros to Folegandros, the VAT charge will only be 16 percent, as you will be traveling between islands with a VAT discount. A dairy company from Naxos delivering goods to enterprises on Lesvos or Chios will charge a 9 percent VAT rate on its prices, but if the goods are delivered to private consumers on the same islands, they will pay a 13 percent tax.
These and other strange examples of VAT discrepancies are everyday problems experienced by travelers and the inhabitants of the Cycladic islands, or those who do business on Skiathos or Rhodes and the neighboring islands, following the abolition of the 30 percent discount that Paros, Naxos, Myconos, Santorini, Skiathos and Rhodes enjoyed up until September 30.
General secretary for public revenues Katerina Savvaidou issued a circular yesterday in a bid to clarify the confusing points, but the list of problems appears endless. Accountants are on alert in an effort to help their clients with the issuing of invoices, as pricing errors can end up being very costly.
It is unclear if financing will be found for the country’s main highway projects, Economy Minister Giorgos Stathakis said yesterday. He said talks between the government and the European Commission on the issue had not yet borne fruit and the outstanding needs of the projects stand at 600 million euros.