With regard to the issue of the application of the reduced VAT rate and its gradual abolition from 1.10.2015, in conjunction with what is stated in the relevant press release of the Ministry of Finance, we wish to point out the following. As is known, subparagraph D2 of paragraph D of article 2 of Law 4336/2015 provides the following:

According to the press release of the Ministry of Finance and on the basis of the above legislative provision, from 1.10.2015 the first group of islands for which the discount is abolished is Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos. For these islands, from 1.10.2015 the VAT rates that apply in the rest of Greece will apply, namely 6%, 13%, 23%. In detail, for these islands (Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos) the following apply: A. Services.

SERVICES UP TO 30.09.2015 FROM 01.10.2015

SERVICES OF ANNEX III WITH REDUCED VAT RATE TICKETS FOR THEATRE PERFORMANCES 4% 6%

PROVISION OF AT-HOME CARE SERVICES FOR CHILDREN, THE ELDERLY, THE SICK AND PERSONS WITH SPECIAL NEEDS IN GENERAL 9% 13%

ACCOMMODATION IN HOTELS AND SIMILAR PREMISES, INCLUDING THE PROVISION OF HOLIDAY ACCOMMODATION AND THE RENTAL OF SPACE IN CAMPS OR CAMPING SITES FOR CARAVANS 4% 13%

OTHER SERVICES SUBJECT TO THE STANDARD VAT RATE 23% 16% 23%

B. Goods.

Goods Up to 30.9.2015 from 1.10.2015 onwards

Goods Books and books for children (Tariff No. EX4901, EX 4903) 4% 6%

Newspapers and periodicals printed, whether or not illustrated or containing advertising (Tariff No. 4902) 4% 6%

Medicines for human medicine of tariff headings 3003 and 3004. Vaccines for human medicine of tariff heading 3002. (Tariff No. EX 3002, EX 3003, EX 3004) 4% 6%

Goods of Annex II of the VAT Code with 13% (meat, fish, vegetables, plants, water, electricity, etc.) 9% 13%

Tobacco industry products and means of transport (para. 4 of article 21) 16% 23%

Other goods except those above 16% 23%

Attention: As from 1.10.2015 there is another VAT change in addition to the one mentioned above, concerning case 2β of Annex III to the VAT Code, “accommodation in hotels and similar establishments, including the provision of holiday accommodation and the letting of space in a campsite or camping site for caravans”. More specifically, pursuant to paragraph 1 (subparas. α΄ and γ΄) of article 1 of Law No 4334/2015 (Government Gazette A΄ 80/16.07.15), as amended by article three of the Legislative Content Act of 18.07.2015 (Government Gazette A΄ 84), from 20.07.2015 up to and including 30.09.2015 accommodation in hotels and similar establishments, including the provision of holiday accommodation and the letting of space in a campsite or camping site for caravans, are subject to the super-reduced VAT rate of 6%, whereas from 01.10.2015 and thereafter they are subject to the reduced rate of 13%. Accordingly, on the basis of all the above, for the remaining islands of par. 4 of article 21 of the VAT Code (except for Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos), the following rates apply as they stand. Coding all the above in a table, we have the following:

Areas Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos Other islands of par. 4 of article 21 of VAT Remaining territory

Period Until 30.9. 2015 from 1.10. 2015 and after Until 30.9. 2015 from 1.10. 2015 and until it changes* Until 30.9. 2015 from 1.10. 2015 and after

Services of Annex III with reduced VAT rate Theatre ticket admissions 4% 6% 4% 4% 6% 6%

The provision of home care services for children, the elderly, patients and persons with disabilities in general. 9% 13% 9% 9% 13% 13%

Accommodation in hotels and similar establishments, including the provision of holiday accommodation and the letting of space in a campsite or camping site for caravans. 4% 13% 4% 9% 6% 13%

Other Services Other services subject to the standard VAT rate 23% 16% 23% 16% 16% 23% 23%

Goods Books and books for children (CN Ex4901, Ex 4903). 4% 6% 4% 4% 6% 6%

Newspapers and periodicals, printed, whether or not illustrated or containing advertising (CN 4902) 4% 6% 4% 4% 6% 6%

Medicines for human medicine of tariff headings 3003 and 3004. Vaccines for human medicine of tariff heading 3002. (CN Ex 3002, Ex 3003, Ex 3004) 4% 6% 4% 4% 6% 6%

Goods of Annex II to the VAT Code with 13% (meat, fish, vegetables, plants, water, electricity, etc.) 9% 13% 9% 9% 13% 13%

Tobacco products and means of transport (par. 4 of article 21) 23% 23% 23% 23% 23% 23%

Other goods apart from the above which are subject to the standard rate 23% 23% 16% 16% 23% 23%

* As is known, under subpara. d of par. 1 of article one of Law No 4334/2015, the following apply: The reductions in rates provided for in paragraphs 4, 5 and 6 of article 21 of Law No2859/2000 (A’ 248) are gradually abolished as follows: a) From 1.10.2015 on the developed tourist islands with the highest per capita income and from 1.6.2016 on the less developed islands. The current VAT rates for the most remote islands are exempt from abolition and remain in force until 31.12.2016. By joint decision of the Ministers of the Interior and Administrative Reconstruction and Finance, the islands of par. 4 of article 21 of Law No2859/2000 (A’248) subject to the above arrangements are specified in greater detail

** From 1.10.205 the accommodation services in hotels etc. of case 2β of Annex III to VAT are subject to the reduced rate of 13% instead of the rate of 6%. Accordingly, on the islands where the discount of 30% continues to apply, the rate is set at 9%. As regards hotel accommodation, we remind you that where hotel businesses provide accommodation and catering services or other services for a single price, on condition that separation into individual rates is not possible, the split by tax rate, from 20.07.2015, is defined by decision POL.1161/21.7.2015.