ATHENS: Greece has two months to respond to the European Commission after it claimed the country was breaking rules on value-added tax (VAT) in relation to private boat sector.
Along with Malta and Cyprus, Greece needs to explain its tax regime on yachts which the European Commission claimed recently is distorting competition.
Pierre Moscovici, Economic Commissioner noted: “In order to achieve fair taxation we need to take action wherever necessary to combat VAT evasion.
“We cannot allow this type of favourable tax treatment granted to private boats, which also distorts competition in the maritime sector.
“Such practices violate EU law and must come to an end.”
The European Commission argues there is a reduced VAT base for the lease of yachts in Greece.
