Greek and Spanish VAT rates to increase

The VAT rates in Greece are to be increased on 15 March. The current rates (19%, 9% and 4.5%) will increase to 21%, 10% and 5%. We understand that the lower rates applicable in the Aegean islands (currently 13%, 6% and 3%) will be increasing to 15%, 7% and 3.5%.

From 1 July 2010, the standard rate of VAT in Spain is to increase to 18% (from 16%). At the same time, the Spanish reduced rate will increase from 7% to 8%.