VAT increase in Greece

As a result of the recent changes announced by the Greek government, VAT rises for certain products and services came into effect today.

Food and drink in restaurants, certain items in supermarkets and public transport will all be affected by the increase from 13% to 23%. (The increase may be a little less on certain islands where discounted VAT rates still apply)
 
Reports in from our representatives this morning confirm that the majority of tavernas are not expecting to increase their prices as a result of the changes, as they will try to absorb the extra VAT where possible. Of course this may differ from one establishment to another and one resort to the next.

We have received some reports of ferry and bus prices (including excursions) increasing, but the increases are minimal and are not affecting all services. Where buses and ferries are provided as part of an inclusive package with Sunvil Holidays and GIC - The Villa Collection, the increase in VAT will not be passed onto our clients.

Of course with the Sterling/Euro exchange rate at the best it's been for many years, prices in Greece are still remarkable value for money for British holidaymakers, and this will more than compensate for any VAT increases.

Banks have reopened again this morning. With cash withdrawal restrictions still in place for holders of Greek bank accounts, we expect cash to still be widely available in ATMs in our resort areas as it has been since the start of the recent bank closures. There are no restrictions on cash withdrawals for holders of UK bank cards, other than the normal daily limit specified by your bank. However our advice remains to take a good supply of Euros with you when you go in case of any local or temporary shortages.

As always, our reps on the ground are keeping us up to date with the local situation and should things change then we will update guests accordingly.