|Update:||Compliance Alert - Permanent 30% VAT reduction for five Eastern Aegean islands|
On 30 June 2021, Greece has announced that the reduced VAT rate applied on the islands of Chios, Kos, Leros, Lesbos, and Samos becomes permanent, starting 1 July 2021.
Before that, the reduction had to be renewed every six months.
The 30% VAT rate is subject to the condition for the above islands to keep hosting migrant reception and hospitality facilities for asylum seekers or refugees from third countries.
Prior to the announcement, the new implementation was discussed and approved by the European Commission at the Eurogroup meeting on 18 June 2021.