VAT and Greek economy

[Jimbo]

Greece's future in the Eurozone is still uncertain.

Many people here and on Facebook have expressed fears about VAT changes and how it might cause them to eat less and lose a bit of weight.

However, Finance Minister Yanis Varoufakis has just released a statement saying that there will be NO VAT changes until the end of the summer.

So, with that fear out of the way, we can all help the local economy by going on lots of trips and over-indulging in food and drink. Yammas.

[Gavlah1973]

Phew!!! Now Tony Cox can have his usual lb of chips with every meal

#notaxonchips

[tenbeech]

  I thought Greek VAT and other taxes were paid by customers but not passed on to the government ,    ( Mostly )

[Jimbo]

Latest VAT proposal rumours are of two rates: 18 and 10.5%

Also - the 18% would drop to 15% is paying with credit or debit cards to avoid cheating. If so, that would mean a potential drop in prices next year. Current main rate is 23%

There's still no agreement between Greece and EU/ECB/IMF, although the noises are slightly more encouraging. June 5th is the next key date. If they can't agree by then and unlock more money, Greece have to default on its payment.

[Andy7]

Was in San Steph last week and with the exchange rate it is now very cheap, 3 course special at Little Prince works out at £6.65 and £3 for a half litre of wine!

[Jimbo]

This morning's TravelFX rate is 1.375 !!!! Even cheaper, then...

[Papapetros]

Just purchased a few from Travelfx at 1.3815

[Jimbo]

Excellent! The Euro is sinking at the moment.

[rilo57]

Your right threre Jimbo.was over in the Uk last week for a day .dont get much for a euro..

[Jimbo]

It's bad news for UK exports to the Eurozone, that's for sure!

[Dupnica]

Hello all you money experts, in view of the news today that Greece may default on its £1.1 billion bill to the International Monetary Fund next month, would it be wise to buy Euros now?The rate today with AceFX is 1.387.

[Jimbo]

It's not new news - it's just that Yanis Varoufakis was on the Andrew Marr show on Sunday. Greece never could pay this amount in June without a release of bailout money.

Anybody's guess is as good as any other. One financial expert on BBC Radio 5's financial programme at 5:15 this morning said he thought the pound/Euro could go as high as 1.5.

It's always a gamble. But the current rate is as high as we've seen for a long time, and I've bought plenty for this year.

A default on payment to the IMF does not mean Greece leaves the Euro. What is just as important is whether the European Central Bank will provide liquidity for Greek Banks.

After four months of negotiations nothing has been agreed. Quote by Reuters on Kathimerini, Interior Minister Gabriel Sakellaridis:

"Still, he acknowledged that agreement on value-added tax hikes, pension and labour reform as well as lower primary surplus targets had yet to be found in negotiations with EU and IMF lenders."

You know that heavy mist than sometimes engulfs San Stef in the morning? That's where we are now. In two weeks' time we will know more.

[xxmullinsxx]

We're supposed to be flying the 29th June with the latest date given to the Greek government being the 30th !! Don't know what to expect 😳 X

[Jimbo]

Anything can happen in the next three weeks. There will be more endless talks, different stories from each side, and so on.

My advice remains to take plenty of cash (including sterling). If there is a default, the situation of the banks becomes "interesting."

[Kernowfox]

I think Grexit is now odds on. For all its structural nonsense (retirement age 57) Greece has been hung out to dry by its European partners with the fiscal requirements for bail out being unachieveable.
Every distressed debtor needs a carrot and where this is none the towel must be thrown in. Germany and co were happy enough to become partners with these second tier economies and should have contracted suitable fiscal targets at the outset to reduce the impact of continual budget deficits.
How will it affect our beloved Corfu - in the final analysis not much .....those white plastic tables at Little Prince will still be alight for years to come......