VAT in Cyprus

Value Added Tax in Cyprus is also known as " Φόρος Προστιθέμενης Αξίας” (ΦΠΑ), in the local language.

What are the VAT rates in Cyprus?

The VAT rates applicable in Cyprus are:

• Standard Rate: 19%.
• Reduced Rates: 9%, 5% and 3%.

The reduced and super-reduced VAT rate only applies to specific products covered by the VAT Directive.

VAT rates by product and service in Cyprus

The standard VAT rate is 19%. Also, the standard VAT rate will generally apply to all goods and services for which no exemption or reduced VAT rate is provided.

The first reduced VAT rate is 9%. For example, this reduced VAT rate applies to hotel accommodation, restaurant services – excluding alcoholic beverages, and taxi transport.

The second reduced VAT rate is 5%. This reduced rate applies, among others, to food products and medicines.

The third reduced VAT rate is 3%. This VAT rate is effective from 21 July 2023, and it applies to newspapers, books, and magazines, except if their purpose is advertising, medical equipment for disabled people, as well as the admission tickets for theatrical, musical and dance performances, among others.

Finally, supplies of goods or services are exempt from VAT, such as postal services, activities in the public interest, financial and real estate services, medical services, and insurance operations.

To confirm the VAT rate applicable to a particular product or service in Cyprus, we recommend that you contact us.

• Foodstuff
   5%
• Water supplies
   5%
• Pharmaceutical products
   5%
• Medical equipment for disabled persons
   3% and zero rated
• Children´s car seats
   5%
• Passenger transport
  5% and 9%
• Books
   3%
• Books on other physical means of support
   3%
• Newspapers
   3%
• Periodicals
   3%
• Admission to cultural services (theatre, etc)
   3%
• Admission to amusement parks
   5%
• Pay TV / cable
  19%
• TV licenses
  19%
• Writers / composers
  5%
• Hotel Accommodation
  9%
• Restaurant and catering services
  9%
• Restaurants
  9%
• Medical and dental care
  Exempt
• Repair of shoes and leather goods
  19%
• Repair of clothing and household linen
  19%
• Hairdressing
  5% and 19%