Value-added tax

Greece is a nation that is ageing demographically. A problem facing most developed countries. This fact is compounding the crisis-stricken nation, with more people retiring and less moving into the workforce to make up for the necessary pension funds to cover the retirees.

Greek civil servants are expected to stage a 24-hour strike on Wednesday to protest the bailout agreement, which was reached between the government in Athens and the eurozone leaders on Monday.

Greece agreed to implement strict reforms in return for a third bailout from its international creditors.

Greece: Prior Actions

Policy Commitments and Actions to be taken in consultation with EC/ECB/IMF staff:

1. 2015 supplementary budget and 2016-19 MTFS[1]

Bulgaria's Economy Minister Bozhidar Lukarski has argued that VAT registration rules need to change, with theVAT registration threshold increasing from BGN 50 000 to BGN 100 000.

Speaking during a visit to Varna, he noted that EU law even provided the opportunity for a threshold of EUR 100 000.

Greece rejected Wednesday «counter proposals» from creditors that were issued in response to Athens' latest budgetary plan, in light of the IMF's position, a government source said.

Two different VAT rates, with the highest one at 23%, as well as a cancelation of the Social Solidarity Benefit for Pensioners, are the terms included in the new proposal of lenders towards Greece. According to the same sources, the IMF sent a letter to Athens yesterday, describing the steps that need to be taken.

Bulgaria is a preferred destination for Italian citizens who wish to save money by going around local law and register abroad vehicles bought in Italy, local media outlets report.

Low taxes and affordable insurance in Bulgaria seem to be part of the explanation.

 Of the 7.9 bln euros of measures submitted, 7.3 bln concerns taxation and social security contributions

By Prokopis Hatzinikolaou & Sotiris Nikas

A ‘tax raid’ worth eight billion euros over the next 18 months is reportedly the crux of the SYRIZA government’s package of proposals to institutional creditors to seal a cash-for-reforms deal.

Greece's latest proposals to reach a debt deal with its creditors are focused on VAT rates, early retirement measures and tax increases, which aim to cover a good part of the country's budgetary gap, Greek press reported Monday.