Dear Associates,
We would like to provide you with the organized information as to the applicable rates of Value Added Tax in Cyprus. Please see all details in the table below:
|
Rates |
Applies in relation to |
|
0% |
Exports, commission from abroad for imports/exports to/from Cyprus, international air and sea transportation of persons, and goods and related services (except intracommunity transport of goods), ship management services, goods that are to be placed in customs warehouses/ bonded warehouses or free zones and be subjected to the relevant customs regime or temporary importation/ transit or transshipment regime goods that are intended to be incorporated into drilling, supply goods after importation but before customs clearance |
|
5% |
Supplies of animal feeding stuff, including food for birds and fish, supplies of fertilizers, supplies of coffins, supplies of liquefied petroleum gas, newspapers, books, magazines and similar items, supplies of various goods for incapacitated persons, supplies of food including drinks for human consumption but excluding alcoholic beverages (beer, wine) and refreshment drinks, supplies of medicines which are used for medical treatment, illness prevention and medical and veterinary purposes, supplies of vaccines for medicine and veterinary medicine and services supplied by undertakers, services of road cleaning, refuse collection and waste treatment (other than services provided by local administration), services of writers, composers and artists, services of hairdressers, renovation and repair services to private residences (subject to certain conditions), fares for urban and rural areas by bus, catering services from school canteens, purchase or construction of a flat or house to be used as a private main residence |
|
9% |
Restaurant services and other similar catering services which consist in the supply of manufactured or non-manufactured food or drinks or both for human consumption including refreshment drinks, alcoholic beverages (beer and wine), accommodation provided by hotels and other similar establishments, including the provision of holiday accommodation, transportation of passengers and their luggage by taxi |
|
19% |
All supplies of goods or rendering of services, except those taxed at 0%, 5%, 9% and exempt ones |
Exemptions:
- Rents
- Suppliers of immovable property (except “new buildings”)
- Insurance and financial services
- Medical services
- Educational services
If you are not sure as to which VAT rate is applicable in your particular case, please feel free to contact our lawyers.
