Cyprus’ standard VAT rate which applies on the supply of goods and services is increased from 18% to 19% as from the 13th January 2014.
Additionally, VAT rate which applies on the restaurant and catering services, tourist accommodation and on the transport of passengers within Cyprus is also increased from 8% to 9%.
The rate of 5% charged on various other goods and services, including animal feeds, pharmaceuticals, confectionaries and entry fees to cultural events will remain unchanged.
Social Insurance:
As from the 1st January 2014, the rate of social insurance contribution made by both employee and employer is increased from 6.8% to 7.8% on the gross salary of the employee. The rate will be increased by 0.5% every five years.
According to new Regulations imposed on Social Insurance Law, each employer is required to issue a Certificate of Commencement of Employment. This certificate should be granted for each new employee who commenced employment on or after 17 December 2012.
The Social Insurance office provides this certificate to the public and is made up of three copies- a white, a pink and a yellow copy. Once the Certificate is completed it should be signed by both parties. The Certificates should be numbered in sequential order and copies kept as follows:
- Yellow copy – to be kept by the employee
- White copy – this should be sent to the Social Insurance Department not later than the end of month from the date which the employee commenced employment
- Pink copy – to be kept by the employer
