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Greece: Guidance on VAT rate reduction for eligible islands

Effective January 1, 2026

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January 28, 2026

The Independent Authority for Public Revenue on December 31, 2025, clarified the 30% reduction of the value added tax (VAT) rate for certain Aegean islands.

The guidance, effective January 1, 2026, details eligibility criteria for goods and services, exclusions, and procedures for correcting VAT errors.


For more information, contact a KPMG tax professional in Greece:

Antonia Ariel Manika | amanika@kpmg.com

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