Value Added Tax

Vat Rates

Standard Rate

The standard rate applies to any provision of goods and services in Cyprus not subject to the zero rate, the reduced rates or is exempt.

Reduced Rate 9%

This applies to the following:

• Restaurant and catering services, excluding the supply of alcoholic drinks, beer and wines.
• Hotel accomodation, tourist lodgements.
• Transportation of passengers and their accompanying luggage.

Reduced Rate 5%

This applies to the following:

• Supply of fertilizers, insecticides, raticides, fungicides, foodstuff for animals, seeds and live animals to be used for the preparation of food.
• Supply of non-bottled water.
• Books, newspapers and magazines.
• Gas in cylinders
• Renovation of private residences
• Salted or spicy products made with cereal or potatoes
• Salted or roasted or spice nuts
• Funeral services
• Transportation of passengers with urban and rural buses
• Bottled water, ready made drinks, juices
• Supply of vaccines for medical and veterinary
• Entry fees for theatres, circus, festivals, luna parks, concerts, museums, zoos, cinemas, exhibitions and cultural events.
• Hairdressing services
• Supplies in the course of catering by school canteens

Zero Rate

This applies to:

• Exports,
• Commission from abroad,
• International air and sea trasnportation, Ship management services,
• Supply of goods after importation but before customs clearance.

Exempted Supplies

• Rental of immovable property
• Financial services
• Hospital and medical services
• Postal services
• Insurance services
• Educational services

Registration

Every individual or company is obliged to register:

• At the end of any month, if the value of taxable supplies recorded in the previous 12 months exceeded €15.600
• At any point in time the value of taxable supplies are expected to exceed €15.600 in the next 30 days.
• Any persons who trade outside Cyprus, in goods and services which would have been taxable if they were provided in Cyprus, have the right of registration.

VAT Returns and Vat Payment

Registered persons must submit to the Vat authorities a Vat return within 40 days from the end of any tax period and pay the vat due.

Intra-Community Trading

Individuals and copmanies who undertake intra-community trading need to complete the following forms:

Intra-Community Acquisitions

• Intrastat – Arrivals
• Inclusion in the Vat return

Intr-Community Supplies

• Intrastat – Supplies
• Recapitulative schedule of supplies
• Inclusion in the vat return

Intrastat declarations are submitted to the Vat authority no later than the 10th day which follows the end of the month stated on the Intrastat declaration. The VIES declaration is submitted to the Vat authorities within 40 days from the end of each calendar quarter.