Value added tax

The Cypriot Parliament has passed a law enabling beneficiaries to apply for a 5% reduced VAT rate within a year of acquiring a residence.

The government closes the subject of a reduction in value added tax (VAT). The talks are being terminated because they contradict one of the points in the coalition agreement between GERB and the United Patriots, namely that within the mandate of this government tax laws should not change. This was announced by Prime Minister Boyko Borisov after today's Coalition Council.

Reductions on value added tax on dozens of goods and services announced by the authorities over the past weeks came into effect on Monday.

The cuts relate to several goods on supermarket shelves which have had VAT cut to 13 percent from 24 percent and to restaurants and cafes where the lower rate has also been applied.

Prime Minister Alexis Tsipras announced on Saturday his plans to lower the value added tax (VAT) and the property levy ENFIA as of 2021 and 2019 respectively in a speech at the 2018 Thessaloniki International Fair, aimed at signalling a new era for Greece after the end of the third bailout.

A representative of Turkey's construction sector has sounded the alarm bell after a steep fall in the value of the Turkish Lira significantly increased costs.

"The construction sector is on the verge of bankruptcy," said Tahir Tellio?lu, the chair of the Assembly of Construction Contractors in the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

France’s Liberation is the latest major foreign media outlet to detail the Tsipras government’s often disastrous negotiations with European creditors over the past few months, before finally agreeing to a harsher bailout plan that one presented in February and even rejected by Greek voters in a July referendum.

 VAT, sell-offs, corporate taxation, various exemptions and defense spending are principal sticking points

By Prokopis Hatzinikolaou & Sotiris Nikas

It could be said that the Greek government and creditors are splitting hairs with both sides proposals being similar but making a difference in the detail. The Greek text was leaked to Kathimerini.

Where are the differences?

– Creditors want Greece to yield 1% of the GDP from VAT but the Greek side can only squeeze 093%.

Under mounting pressure, Greece presented its new reform proposals to its Eurozone partners on Monday aimed at the release of 7.2 bn euros worth of bailout funds benchmarked for Greece. An agreement is needed to stave off a Greek default.

Bulgarian police has intercepted a criminal group that drained the state coffers of around BGN 1 M in unpaid VAT.

The police operation was assisted by the Chief Directorate "Combating Organized Crime" of the Interior Ministry and the National Revenue Agency.

The group operated in Bulgaria and controlled companies serviced by one and the same accounting firm.