How do Greek VAT changes affect your holiday to a villa featured by Crete Escapes?
As part of the bailout terms the lower rates of VAT which applied on the smaller Greek islands and to several services including holiday accommodation and restaurant bills have been withdrawn.
Crete is not classed as one of the smaller Greek islands and the standard rate of VAT at 23% has applied there for several years hence holiday costs such as car hire will NOT be affected by these changes.
VAT on villa rentals - our owners have all agreed to absorb the increase in VAT from 6.5% to 13%, certainly for the 2016 season. There will be no increase to prices displayed on the website. The price you pay is fixed as per your booking confirmation which will be issued at the time of booking.
VAT on restaurant bills - this tax is increasing from 13% to 23% but please bear in mind that eating out in this part of Crete is extremely good value for money and an increase in the VAT rate won't make a massive difference to the overall bill. In the summer of 2015 it was possible for a family of 4 to eat out in a local taverna for less than 60 euro.