As of 11 January, Cyprus will revert to the normal 9% VAT rate (instead of the reduced 5%) for passenger transport, restaurants, hotel accommodation, and catering services.
The reduced 5% vat rate period expired on 10 January 2021 after being introduced by the government on July 2020 in an effort to help minimize the dire effects of the coronavirus pandemic on the local economy and especially the tourism and hospitality industry.
The 9% VAT rate now applies to the following business sections:
– Tourism, Hotels and other similar accommodation
– Catering services and restaurants
– Passengers Transportation and their luggage within the Republic by bus or taxi.
Update by Cyprus Audit firm P. Constantinou & Co. Ltd