Quote:
Originally Posted by NFH
I understood that the VAT reduction on some Greek islands applies to goods, but not to services. Also the whole of Greece, except for Mount Athos, is within the EU VAT area.
The difference in Spain is that the Canaries, Ceuta and Melilla are outside the EU VAT area. Normally if a customer based in the mainland EU roams outside the EU VAT area inside the EU (e.g. Gibraltar, French overseas territories, Åland etc), no VAT is charged by the home network as a consequence of a derogation from Article 9(1) of Council Directive 77/388 (OJ No. L145, 13.6.1997, p.1) ("the Sixth VAT Directive") made by Council Decision 6236/97 (OJ No. L86, 28.3.97, p. 33). However, this does not appear to be the case in practice when roaming in the Canaries, for example, because the same networks cover the whole of Spain, making it difficult for the home network to determine whether usage occurred inside or outside the EU VAT area. |
yes you're right the reduced vat in greek islands only applies to goods, not services.
the only exception is the tourist industry like hotels, restaurants etc where they do charge the reduced vat on these services.