Cyprus new reduced VAT rate at 3%

Cyprus introduces a new reduced VAT rate at 3% and includes certain goods at zero VAT rate. Also, a temporary measure consisting of VAT rate reduction for basic products.

Cyprus announced the introduction of a new reduced VAT rate at 3% for certain supplies of goods and services that used to be at 5% VAT rate.

The new VAT rate of 3% applies from 21 July 2023 to the following supplies:

  • Supplies of books, newspapers and magazines, including brochures and similar printed material, both in paper and electronic formats, unless the main purpose of the publication is advertising.
  • Special equipment for disabled people consisting of talking books, special lifting devices, wheelchairs and other vehicles.
  • Orthopedic goods and devices, and other similar medical equipment.
  • Street cleaning, waste collection and waste treatment services.
  • Entrance ticket for the first performance of theatrical, musical and dance performances.

Also, the following items will benefit from a zero VAT rate, starting the same date:

  • Typewritters with Braille characters and special electronic typewrites.
  • Armchair vehicles intended for the personal use by disabled people.

Finally, you shall consider the temporary measure to zero rate certain basic products until 31 October 2023:

  • Foodstuffs: including bread, milk, eggs, baby food,
  • Hygiene and personal care products: baby and adult diapers, products for feminine hygiene protection.

Have a look at our overview of VAT rates in Cyprus.

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