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Value Added Tax (VAT)

VAT Registration

Compulsory registration:

  • If the value of the taxable supplies exceeds €15,600 during the 12 preceding months.
  • At any time, if the expected turnover will exceed €15,600 in a period of 30 days.
  • Provides services to a VAT registered person within the European Union with nil registration threshold.

Voluntary registration even if the value does not exceed €15,600 is also available.

VAT RATES

Standard rate –19% from 13 January 2014.
Reduced rate – 9% from 13 January 2014.
Reduced rate – 5% from 1 July 2000.
Zero rate – 0% from 1 July 1992.

Standard rate

The standard rate applies to the provision of all goods and services in Cyprus which are not subject to the zero rate, the reduced rate or are not exempt.

Reduced rate 9%     

The reduced rate of 9% applies to:

  • Hotel (and other similar lodgments) accommodation;
  • Restaurants;
  • Taxis and busses;

Reduced rate 5%

The reduced rate of 5% applies to:

  • Delivery and take away services from restaurants;
  • Pharmaceutical products;
  • Books, magazines and newspapers;
  • Hairdressing services;
  • Catering services from school canteens;
  • Entry fees to museums, concerts, theaters, circus, Luna parks and festivals.

Zero rate

The zero rate applies to:

  • Vessel and aircraft related services such as passenger transportation outside Cyprus, repair, maintenance, chartering, hiring;
  • Goods exportation.

Exempt supplies

  • Insurance, postal, hospital services;
  • Financial services with some exceptions;
  • Rental of immovable property;

Disposal of immovable property where the application for building permission has been submitted prior to 1 May 2004.