Cyprus: temporary reduction of the VAT rate applicable to hotel accommodation, restaurant services and certain passenger transport from 9% to 5% as from 1 July 2020 until 10 January 2021

VAT Decree Κ.∆.Π. 268/2020 was published today, 23 June 2020, in the Official Gazette of the Republic of Cyprus in respect of the previously announced plans of temporary reduction from 9% to 5% of the VAT rate applicable to:

(1) hotel accommodation
(2) restaurant and catering services, and
(3) passenger transport in urban, intercity and rural taxis and tourist and intercity buses,
for the period from 1 July 2020 until 10 January 2021.

Schedule 5 the Cypriot VAT Law (95(I)/2000-2020) is amended accordingly by adding sub-paragraphs (18), (19) and (20) respectively and Schedule 12 is amended by deleting sub-paragraphs (1), (2) and (3).

The VAT Decree can be found here (see pages 5-6, available in Greek only).
Courtesy of Silviya Ivanova, Independent VAT consultant




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