Thinking of booking for Corfu end July/beginning August but wary of taxes going up and being a family of 4 adults that will be costly as we only like to stay in apartments and eat out. It is just not knowing what could happen over the next few weeks!!
Message posted by stuart d hill on 24 June 2011 at 10:09pm - IP Logged
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We were chatting to a bar owner in Corfu just a couple of weeks ago, and he said that VAT had risen, so that has led to an increase in prices. However, we found there to be very little difference in what we paid for a meal last year. Drinks prices had risen a bit - but then prices have risen at home too. We took a few bits and bobs of foodstuffs to keep the cost down, and on the whole, spent roughly the same as last year.
Message posted by flynnmo on 25 June 2011 at 12:55am - IP Logged
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We found very little difference from last year's prices for eating out in Sidari. Having spoken to several Greek friends/taverna owners, they ALL said the only way they would survive was to keep the prices down - they might make a little less profit, but they would still be in business! Having said that, I think it applies more to those who own their premises. If they have to pay rent, it must be a nightmare! I can't see how they can survive at all! Moyra
Message posted by Bill on 25 June 2011 at 8:49am - IP Logged
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VAT on food and drink purchased in tavernas/restaurants etc (in preference to supermarkets) is currently 13%. It will be rising in September to 23%.
What the knock on effect on the menu prices will be remains to be seen, but if you are planning on travelling in July or August prices will probably be as others have indicated above.
Message posted by trisa on 25 June 2011 at 9:05am - IP Logged
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I read somewhere that in the next round of austerity measures to be announced the VAT may be reduced, the EU had agreed that Greece could reduce the VAT down to 20% if they wanted to.
I'll try to find the article I was reading.
Bruce
Message posted by cannock girl on 25 June 2011 at 2:34pm - IP Logged
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Quote: Originally posted by trisa on 25 June 2011
We paid 23% VAT on our beers in a taverna last Sunday.
Trisa.
VAT has been 23% on all alcohol, irrespective of where it is purchased, for some time now. Sorry, in my post I should have said a rise to 23% from 13% for all food and soft beverages served in restaurants etc.
Message posted by Bill on 25 June 2011 at 3:12pm - IP Logged
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Quote: Originally posted by BruceAndMaria on 25 June 2011
I read somewhere that in the next round of austerity measures to be announced the VAT may be reduced, the EU had agreed that Greece could reduce the VAT down to 20% if they wanted to.
I'll try to find the article I was reading.
Bruce
Could have been this one Bruce? I wonder whether it'll go up or down!!
Message posted by sunny days on 25 June 2011 at 4:38pm - IP Logged
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We just came back 2 weeks ago, VAT is 23%, petrol is 1.74/litre, two coffees cost 5 Euros (five pounds)...we had a great time but it's English prices++...still Greece has better beaches than Nottingham!!
Message posted by Graham T-A on 29 June 2011 at 9:32am - IP Logged
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Quote: Originally posted by mickey2bagz on 29 June 2011
We just came back 2 weeks ago, VAT is 23%, petrol is 1.74/litre, two coffees cost 5 Euros (five pounds)...we had a great time but it's English prices++...still Greece has better beaches than Nottingham!!
What's wromg with the beach in Nottingham then? I go every summer to the beach and sit for a while in one of the deckchairs after a little paddle. I only wish it was English prices but nowdays I find most things are more expensive than England and it's getting worse. Watching the news last night and from what they were saying it looks like 'when' rather than 'if' Greece leaves the euro which they said would bancrupt several Greek banks. Problem is, stories like this will make it less likely that people start to use banks to keep their money which makes the problems worse.
Message posted by Bill on 29 June 2011 at 9:50am - IP Logged
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Sorry mickey2bagz, whilst your info is largely correct, VAT is only 23% on some items, it is not yet that high on food and soft drinks purchased in tavernas. Those products are currently 13%, but are set to rise to 23% in September. Just for the record, the current VAT rates in Greece are as follows:
23% — Clothes, shoes, cleaning products and detergents, alcohol/wine, tobacco products, toiletries, barber and hair salon services, telecommunications (mobile/cell, land line, Internet service), electronics, appliances, CDs, DVDs, furniture, jewelry, plastics, paper products, school supplies, fuel/gas/petrol, cars, motorcycles, scooters, bicycles, vehicle repair and maintenance, road and bridge tolls, use of sports/training/athletic facilities and events, building materials, professional tax/accounting services, artwork, recently constructed buildings (excluding primary residence).
These professions are no longer tax exempt, and a 23% percent tax for services rendered may apply:
* Lawyers, notaries, non-salaried registrars and bailiffs
13 percent – Food purchased from the supermarket and grocer (manavis), food from eating establishments/cafes/pastry shops/bakeries, non-alcoholic beverages, eyeglasses, transport tickets (ferry, bus, train), electricity (DEH), natural gas, water (EYDAP); tickets for movies, concerts, circuses, zoos, exhibitions and other cultural events; equipment to serve the disabled, repairs on older homes (plumber, electrician, painters).
These professions and services are no longer exempt or excluded, so a 13% percent tax will apply:
* Taxi drivers: Tax should be charged on fare; tolls already have tax included.
* Writers, authors, artists, performers
* Private hospital/medical/dental/lab services
* Cosmetic or aesthetic services by dermatologists, surgeons and doctors
6.5 percent — Books, magazines, newspapers, theater tickets, pharmaceuticals, hotel accommodation, self-contained apartment rentals and camping services.
Quote: Originally posted by windmill on 25 June 2011
Austerity vat reduction?..got to be a joke.
There is evidence that a reduction in tax rates can actually lead to an increase in the overall tax tke by the revenue authorities. The reasons are (largely) twofold - firstly, it puts more money in the taxpayers pocket or makes things cheaper, so more money is spent and, secondly, it can make tax evasion/avoidance less atractive as the effort required outweighs the savings.
This is largely what happens under the Thatcher Government. Unfortunatley, Lawson (then Chancellor) screwed up by announcing the end of double mortgage relief well in advance, thus creating a property bubble (and subsequent crash) as people tried to beat the deadline - see, more tax avoidance
[As an aside, there is an increasing tendancy for Governments to introduce new tax legislation without proper reference to the civil servants, who should be given sufficient time to go over the draughting word by word in order to consider the implications of what is proposed and to identify potential loopholes - I know, I've been there. Moreover, Govenments now increasingly rely on the "intention" of the law, rather than the word of law; to my mind this is not only sloppy, it is also lazy and inefective].
Martyn
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