VATupdate

VAT rates in Cyprus

Quick overview

Standard Rate Reduced Rate Other Rates
19% 5% 9%

The local name for VAT in Cyprus is Φόρος Προστιθέμενης Αξίας Recently, Cyprus decided to apply the zero rate for certain COVID-19 related medical products.  A temporary Coronavirus measure, which allowed an even further reduced VAT rate for accommodation, restaurants, and passenger transport (to 5%) was recently ended, which meant that the rate for these services went back to 9%. For more information about (recent) rate change developments in Cyprus, please click here. Standard rate: 19% This is in place since 13-1-2014.  Before that, the standard rate was 18%. This rate applies for all transactions that take place in Cyprus, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).  Note that the VAT jurisdiction of Cyprus does not include areas of the Republic of Cyprus in which the government of the Republic of Cyprus does not exercise effective control (i.e. Northern Cyprus). Zero rate (0%) Cyprus applies various exemptions with a refund of tax paid at preceding stages (zero rates), such as intra-Community and international transport, intra-Community supplies of goods, exports of goods (and related services) to non-EU countries, sea vessels and aircraft and related goods/services, and services to goods and goods under customs control. Reduced rate 1: 5% Examples of transactions subject to this rate are:

  • Certain foodstuffs
  • Water supplies
  • Pharmaceutical products
  • Medical equipment
  • for disabled persons
  • Children’s car seats
  • Certain transport of passengers
  • Books
  • Newspapers
  • Periodicals
  • Admission to cultural services (shows, cinema, theatre) (unless exempt)
  • Admission to amusement parks
  • Writers, composers, etc.
  • Renovation and repairing of private dwellings
  • Admission to sporting events
  • Use of sporting facilities
  • Supply of coffins and funeral services
  • Collection of domestic waste and street cleaning, other than the supply of such services by bodies referred to in Article 13 of the Directive 2006/112/EC
  • Hairdressing

Reduced rate 2: 9% Examples of transactions subject to this rate are:

  • Certain transport of passengers
  • Hotel accommodation
  • Restaurant and catering services

For a description of how the VAT rates are structured in the European Union, please see here.  The European Commission has also made an EU VAT rate database available where you can find the applicable VAT rate by entering the CN/CPA code of the goods respectively services (you can find more information here). A global VAT/GST rate overview can be found here (note this is a work in progress). This post was last updated on 4 April 2021.

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