The reduced VAT rate of 9% is back in force on tourism accommodation and catering sector services

One of the measures taken by the Cyprus cGovernment back in May 2020 to support the economy and workforces affected by the Coronavirus pandemic was referring to the reduction of the VAT rate applicable on tourism accommodation and catering sector services from 9% to a further reduced percentage of 5%, for the period from 1 July 2020 to 10 January 2021, in an attempt to strengthen the tourism sector.

We would like to remind you that as from the 11th of January 2021, the reduced VAT rate of 9% is again applicable to the following services:

• Hotel, tourist and other similar accommodation;
• Restaurant and catering services;
• Transportation of passengers and their accompanying luggage within the Republic by urban, intercity and rural taxis and with tourist and intercity buses.

Therefore, as from 11/01/2021, the reduced VAT rate of 9% is imposed on the relevant services in accordance with the tax point rules as those are defined in the VAT Legislation and the relevant regulations.

Contact Person:

Demetra Constantinou
Partner – VAT Department
[email protected]
[email protected]

Website: www.kinanis.com

 

---

---