- Cyprus has implemented a reduced VAT rate of 5% for construction and renovation work on buildings used for VAT-exempt educational purposes, applicable to public educational institutions, registered private schools, private tertiary colleges, and certain recognized training organizations, effective from December 5, 2025.
- The reduced VAT rate covers both labor and materials for new constructions and renovations but excludes private tutoring institutes and afternoon schools not part of the standard educational framework.
- Additionally, Cyprus has extended the temporary zero VAT rate on basic goods, including baby milk, diapers, feminine hygiene products, and specific fresh fruits and vegetables, until December 31, 2026, as per Decree No. 337/2025.
Source Orbitax
- Cyprus has reduced VAT to 5% for construction and renovation work.
- The reduced VAT rate applies specifically to educational institutions.
Source: research.ibfd.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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