- Cyprus Tax Department Circular 4/2026 clarifies VAT treatment of medical care and related services: exemption, 5% reduced rate, or standard VAT depend on the nature and purpose of the service, not just the provider’s professional status.
- VAT exemption applies to genuine medical care for human health, including hospital/medical care, services by recognised healthcare professionals and dentists, human organs/blood/human milk supplies, and ambulance transport of sick or injured persons.
- Only services closely connected with therapeutic or nursing care are exempt; ancillary items like phone services, TV rental, and visitor beds/meals are taxable, while sample collection and transfer to a specialist lab may qualify as closely connected.
- Cosmetic/aesthetic services and non-therapeutic employment, insurance, legal, or medico-legal services fall outside the exemption and are taxable at the applicable rate, even if performed by a doctor.
- Some non-exempt medical, dental, and thermal-treatment services may still qualify for the reduced 5% VAT rate.
Source: irglobal.com
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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