Value Added Tax

For more detailed information about Value Added Tax, please either scroll down on this page (quicker) or use the main menu on the left.

Rates

Rate % Details
0%
  • EU sales, exports, food (unless the supply is in the course of catering), medicines and vaccines
  • Commission from abroad for imports and exports from and to Cyprus
  • International air and sea transportation of persons, goods and related services
  • Ship management services
  • Goods that are to be placed in customs warehouses (bonded warehouses) or free-zones, and be subject to the relevant customs regime or temporary importation (transit) or transshipment regime goods that are intended to be incorporated into drilling
  • Goods after importation, but before customs clearance
5%
  • Supply of food in the course of catering (excluding alcohol), animal feeding stuffs, fertilizers
  • Accommodation in hotels and other tourist establishments, supply of coffins, 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, newspapers, magazines and books
  • Sales of fertilizers, insecticides, fungicides, animal feed, plant seeds, livestock animals for foodstuff manufacturing
  • Water, gas bottles, ice cream and related products, non-bottled water
  • Salted or spicy products made with cereal or potatoes, salted, roasted, spicy nuts, sundry goods used by disabled persons
15%
  • All supplies of goods or rendering of services except those taxed at 0%, 5% or exempt

Exemptions

  • Rentals of property
  • Supplies of immovable properties
  • Insurance and financial services
  • Medical services, hospital services
  • Educational services
  • Postal Services
  • Disposal of land to be used for building purposes

Registration

Registration for VAT is obligatory:

  • At the end of any month, if the value of the taxable supplies (supplies taxed at the rates of 0% and/or 5% and/or 15%) in the period of one year, then ending has exceeded ₤9.000, or
  • At any time, if there are reasonable grounds for believing that the value of the taxable supplies in the period of 30 days, then beginning will exceed ₤9.000.

Businesses with a turnover of less than ₤9.000 can be registered voluntarily.

Voluntarily Registration

A person who has a business establishment in Cyprus, or his usual place of residence is in Cyprus, and he acquires supplies outside Cyprus (taxable supplies if made within Cyprus), is entitled to voluntary registration.

Right of Registration

To persons who trade outside the Republic goods and services which would have been taxable if they were provided within the Republic, group of companies and company divisions.

Non - Recoverable VAT

  • Expenditure for entertainment of persons other than staff
  • Purchase of private saloon cars up to nine seats.

Intra - EU Goods Trading

Merchandisers who undertake sales to or purchase from (including triangular trade) other EU Member States need to submit the following forms, in addition to the quarterly VAT Return:

EU Acquisitions (Purchases):

Intrastat (detailed reporting of all physical arrivals of goods - all items - in Cyprus)

  1. Inclusion in VAT Return (on a total basis)

EU Supplies (Sales):

  1. Intrastat (detailed reporting of all physical departures of goods - all items - in Cyprus)
  2. VAT Information Exchange System form (VIES form - detailing allsales, including triangular transactions)
  3. Inclusion in VAT Return (on a total basis with 0% VAT rate)
Submission Deadlines:
  1. VAT Return - 40 days from the end of VAT reporting quarter
  2. VIES - 40 days from the end of the calendar quarter, for the transactions of the calendar quarter
  3. Intrastat - 10 days from month end for transactions of previous month