VATupdate

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Cyprus: plans to temporary reduce the VAT rate on restaurants and hotel accommodation from 9% to 5% as from 1 July 2020 until 10 January 2021

On 27 May 2020, the President of the Republic of Cyprus, Mr. Nicos Anastasiades, announced  a set of new measures to be taken by the Government to support the economy in view of the COVID-19 crisis.

One of the new measures to be taken up concerns VAT. In particular, it was announced that “in order to strengthen the sector of tourist accommodation and catering, the reduction of VAT has been decided from 9% to 5% for the period from 1st July 2020 until 10 January 2021″.

It is noted that the announced VAT measure has not yet been enacted into law, hence further updates are to be expected.

Source: Cyprus Government

Source: PIO

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