A new circular under the number 1061/2016 has been published in relation to the increase of VAT rate from 23% to 24% and the elimination of reduced rates in a second group of Greek islands.
The new rates apply as from 01.06.2016, as follows:
The standard rate is increased to 24%,
The reduced rate applicable to goods and services -as mentioned in Annex III of the VAT Code- remains 13%,
The minimum rate applied on certain goods and services –as mentioned in Annex III of the VAT Code-, remains 6%.
Following the above mentioned provisions and in accordance with paragraphs 4, 5 and 6 of Article 21 of the VAT Code, the 30% reduced rates applicable to the Aegean islands, for which reduced rates still apply, are 17%, 9% and 4% respectively.
For any tax document issued by the entry into force of the new rates onwards, VAT will be calculated at new rates, no matter if it is related to transactions made in the previous period. For credit invoices issued by 01.06.2016 onwards, being related to transactions made before that date, VAT is calculated at new rates.
If it is necessary to issue a document in order to cancel a transaction (e.g. accounting note, etc.) VAT must be indicated at the same rate, as that of the initial transaction, regardless of the date of issue, since in this case the transaction is canceled in its entirety.
Moreover, according to art. 52 para. 3, which amended art. 21 of VAT Code, from 1/6/2016 onwards the reduced rates do not apply to the islands Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonissos, Kea, Antiparos and Sifnos. Consequently, to these islands, the normal VAT rates are applied, namely 24% (normal), 13% (reduced), 6% (minimum). In fact, this is the second group of Greek islands, which are excluded from the reduced rates application (the first group included Santorini, Mykonos, Naxos, Paros, Rhodes, Skiathos).