- Cyprus Tax Department Circular 4/2026 clarifies VAT treatment of medical and related services, replacing earlier guidance.
- Medical care is VAT-exempt only when it is genuinely for human health purposes (prevention, diagnosis, protection, restoration, maintenance or treatment), and exemption depends on the nature and purpose of the service, not merely on the provider being a healthcare professional.
- Exempt services include hospital and medical care, closely connected goods/services, services by recognized healthcare professionals and dentists, supplies of human organs/blood/human milk, and ambulance transport of sick or injured persons.
- Services supplied in a hospital setting are not automatically exempt; items such as patient telephone use, TV rental, and beds/meals for visitors or companions are taxable, while sample collection and transfer for lab analysis may qualify as closely connected medical care.
- Cosmetic/aesthetic procedures aimed mainly at improving appearance, rather than treating or preventing a medical condition, are taxable and do not qualify for the medical-care exemption.
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.
Latest Posts in "Cyprus"
- Cyprus Reduces VAT to 9% on Residential Photovoltaic Systems
- Cyprus Extends Zero VAT Rate on Baby Products, Hygiene Items, Fruit and Vegetables Until End-2027
- Cyprus approves temporary 0% VAT on essential goods
- Cyprus: Zero VAT Rate Applied to Essential Goods Until May 2027
- Cyprus Launches €25 Million VAT Case Over Abramovich-Linked Luxury Yacht
