Main pageNewsVAT rate in Cyprus has been changed since 13.01.2014

VAT rate in Cyprus has been changed since 13.01.2014

Since 13.01.2014 the VAT rate in Cyprus has been changed . The VAT rate is 19%.

This rate is valid instead the 18% rate.

The reduce rates are also acting in Cyprus.

The reduced rate of 9% applies to:
• Restaurants and catering services (including the supply of alcoholic beverages , beer, wine and carbonated drinks) (Act effective from January 10, 2011 ) .
• tourist accommodation in hotels, apartments and other similar areas (Law effective from 1 January 2011) .
• Transportation of passengers and their baggage on the territory of Cyprus, using any type of civil, water, long-distance transport and taxi services as well as.

The reduced rate of 5 % applies to:
• Catering and supply of beverages (excluding alcoholic beverages, beer, wine and soft drinks), regardless of whether the goods were delivered to the consumer or supplier were purchased directly by the consumer. (Law is valid from 10 January 2011)
• Supply of pharmaceutical products. (Law is valid from 10 January 2011)
• Books , newspapers and magazines
• Hairdressing
• Tickets to the theater, circus, festivals, amusement parks, concerts, museums, etc.
• Entrance tickets to sporting events and fees for the use of sports facilities
• Repair and reconstruction work in private homes after 3 years from the time of their first settlement
• Service delivery in school canteens

The zero rate applies to:
• Exports of goods
• repair, maintenance , chartering and hiring of vessels used in marine navigation, as well as paid for carrying passengers or for other commercial , industrial or other purposes
• supply , modification , repair, maintenance , chartering and hiring of aircraft vessels used mainly for airlines paid international traffic
• Delivery of services directly related to the needs of the Navy and Air Force
• Transportation of passengers from Cyprus abroad and vice versa, using ships and aircraft

Exempted from VAT:
• property rental
• Insurance
• Financial services (with some exceptions)
• Hospital and medical services
• Postal services
• Use of real estate planning permission which was received prior to May 1, 2004 .