Greece becomes more expensive as of July 20, as higher value added tax rates go into effect.
The new VAT rates are part of the requirements set by creditors in order for Greece to get a third bailout package and avoid bankruptcy. The government aims at generating 2 billion euros in revenue from the particular measure.
A large number of products and services jump from 13% to 23% VAT. This means that shelf prices and services will increase by 9%.
Products that will be in the 23% rate as of July 20 are beef, sugar, vinegar, salt, coffee, cocoa, potato chips, beverages, gum, beef meat, sausages, cooking oil, pre-cooked food, ice cream, canned food, sweets, condiments, spices, and all foods and drinks served in restaurants, coffee shops, bars, canteens and so on.
Clothes, shoes, textiles and several household items will go to 23% VAT as well as farm products like animal feed, seeds and fertilizer.
Regarding services, price raises will apply to hotels, private hospital bills, taxis, florists, house repairs, private tutoring, airplane and boat tickets, clothing and shoe repairs, cinemas, concerts, etc. Hotel accommodation goes up to 13% VAT from 6.5%.
Low VAT rates remain in medicine, theater tickets and books. From 6.5%, they are reduced to 6%.
New VAT rates will apply to Aegean Sea islands as of October 1. The Greek islands used to enjoy reduced VAT rates. They are going up to 6%, 13% and 23% as opposed to 5%, 9% and 16%.
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