VAT Rates in Cyprus
Cyprus sets its standard VAT rate at 19%. According to the VAT legislation in Cyprus, there are two additional reduced rates: one at 9% and another at 5%. Some goods and services are exempt from VAT as outlined in the Seventh Schedule of the VAT Law in Cyprus, indicating these supplies do not incur VAT.
When expenses are incurred for supplies that are exempt, taxpayers are unable to deduct input VAT, which distinguishes these from supplies that are zero-rated, where such deductions are allowed.
To get updated regarding all VAT rates in Cyprus view our table below.
VAT Rates in Cyprus
Taxable supplies include the provision of goods or services that are subject to different rates of VAT, including a zero rate, based on their categorization. As a result, sellers must apply the correct VAT rate to ensure they collect the accurate amount of tax to be remitted to the Tax Authority of Cyprus.
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Standard VAT rate |
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| The standard VAT rate, which is the prevailing value-added tax rate levied on goods and services in a country, is applicable to the majority of goods and services. However, there are certain exemptions, such as for essential items or goods and services that may be subject to a lower rate, which are outlined below. | |
| Rate | Good or Services |
| 19% | This rate applies to most sales of goods and services and encompasses all products and services not subject to VAT rates. |
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Reduced VAT rates |
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| Below are examples of goods and services that may be eligible for a reduced value-added tax (VAT) rate: | |
| Rate | Good or Services |
| 9% | First reduced Rate |
| Starting January 11, 2021, the hospitality and tourism industries will be subject to VAT in the following areas: Provision of accommodation in hotels, tourist accommodations, and similar establishments, as well as holiday accommodation, Restaurant and catering services, including the preparation of food or drinks for human consumption on or off the premises of the provider, Passenger transportation services, including urban, long-distance, and rural taxis, tourist buses, and intercity buses, Domestic transportation of passengers and their luggage by sea and Supply of goods and services by nursing homes that are not considered exempt under the Seventh Schedule to the VAT Law. | |
| 5% | Second reduced rate |
| Books, newspapers, and magazines: Print media, Reading materials, Periodicals, Publications | |
| Acquisition and/or construction of residences for first use as a primary and permanent place of residence and related services: Homeownership, Real estate investment, Housing development, Property management | |
| Supplies related to hospitality and tourism (until January 10, 2021, inclusive): Tourism-related goods and services, Travel-related expenses, Hospitality, industry supplies, Vacation-related purchases | |
| Transport of passengers and their luggage by urban and rural bus: Public transportation, Bus travel, Commuter services, Mass transit | |
| Admission to sporting events, theaters, concerts, museums, artistic events, and similar cultural events: Cultural experiences, Entertainment events, Artistic, performances, Live shows | |
| Medicines and vaccines: Pharmaceuticals, Prescription drugs, Medical treatments, Immunizations | |
| Bottled water, juice drinks, beer and wine, alcoholic beverages: Beverages, Alcohol products, Refreshments, Liquids | |
| Fertilizers and insecticides: Agricultural chemicals, Crop enhancers, Pest control products, Plant nutrients | |
| Animal feed, including food for birds and fish: Pet food, Livestock feed, Animal nutrition, Fish food | |
| Certain confectionery products: Sweet treats, Desserts, Candy, Sugary snacks | |
| Hair salon services: Haircare, Styling services, Barber services, Beauty treatments | |
| Coffins and burial services: Funeral products, Mortuary services, Interment services, Memorial services | |
| Live animals used for the preparation of food for human consumption: Livestock, Food animals, Meat products, Poultry and game | |
| 0% | Zero rated products |
| Supply, lease, and repair of seagoing vehicles and aircraft and related services | |
| International transport of persons | |
| Exports of goods outside the EU and related services | |
| Intra-Community supplies of goods and intangible services supplied to another taxable person established in the EU or to recipients outside the EU | |
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Exempt From VAT |
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| Banking, financial, and share sales services: Financial transactions, investment management, and securities trading | |
| Hospital, medical, and dental care services: Healthcare, medical treatment, and dental procedures | |
| Services rendered by licensed medical professionals: Medical consultations, diagnosis, treatment, and therapy | |
| Services rendered by licensed medical professionals: Teaching, training, instruction, and education | |
| Land and building supplies and leases: Property sales, rentals, and leases | |
| Cultural services provided by public bodies or nonprofit organizations: Museums, libraries, art galleries, and public parks | |
| Management services provided to mutual funds: Fund administration and investment management services | |
| Postage and stamps: Mailing services and postage fees | |
| Lottery tickets and betting coupons for football and horse racing: Gaming, gambling, and betting services. | |
Numerous nations introduced temporary modifications to their VAT rates in response to COVID-19. VAT rate reductions on products and services sold by companies that were particularly hit hard by the pandemic’s economic fallout.
To learn more about the implications of COVID-19 in Cyprus and get informed on the latest VAT news visit our Global VAT News page by clicking here.
If you wish to get informed about all VAT rates in Europe of VAT rates in the World you can view our dedicated page by clicking on the respective title.
Last Updated: 27/03/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
