Cyprus Updates VAT Rules for Medical Care Services

• Cyprus Tax Department Circular 4/2026 updates and consolidates prior guidance on VAT treatment of medical care and related services.
• VAT exemption depends on the nature, purpose, and circumstances of the service; being a healthcare professional does not automatically make all services exempt.
• Exempt medical care includes services for prevention, diagnosis, protection, restoration, maintenance, or treatment of human health, including hospital/medical care, closely connected goods and services, services by recognized healthcare professionals and dentists, supplies of human organs/blood/human milk, and ambulance transport.
• Goods such as medicines supplied as part of a single inpatient medical-care service may also be exempt.
• Services in a healthcare setting are not exempt unless they are necessary for the main medical service and its therapeutic/nursing purpose; examples taxable under normal rules include patient phone services, TV rental, and beds/meals for visitors or companions, while sample collection and transfer for lab analysis may qualify as exempt.

Source: fiscal-requirements.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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