Today is July 1, the date that the Greek government has set for increasing VAT (value-added tax) on yacht charter vacations. Any charters in Greek waters that end after today will be subject to the increased VAT rates, no matter when the charter was booked or when it began.
Charters where clients used to pay a 4.5 percent VAT will now be subject to a 5.5 percent VAT. Charters where clients used to pay a 10 percent VAT will now be subject to an 11 percent VAT. Any reputable charter broker can help you determine which percentage affects the yacht and charter duration of your choice, and then collect the appropriate VAT from you at the time that you book your charter vacation.
The new increases follow a VAT hike that was announced less than four months ago, in March, as part of a $6.5 billion government plan to get Greece’s fiscal deficits under control. Greece’s budget deficit is 12.7 percent of its gross domestic product. The European Union limit is 3 percent.